EUR/USD and GBP/USD go higher as USD/JPY still under pressure

Dollar weakness in the wake of the Federal Reserve meeting has proved to be a boon for the euro and sterling, but has put pressure on USD/JPY.

EUR/USD rallies off support

Early price action suggests a resumption of the upward move for EUR/USD, as the price bounces from $1.1325.

Further gains head towards $1.14, and above this a new higher high is created. This bullish view remains in place unless we see a reversal below $1.125, which may indicate a further decline and the creation of lower lows and lower highs.

GBP/USD edges higher in early trade

For GBP/USD too it looks like the overnight pullback has run its course – the $1.264 area has provided support over the past week, so a drop below this suggests some more near-term weakness.

Alternatively, a resumption of the upward move clears the path to $1.28 and higher.

USD/JPY remains under pressure

For USD/JPY, it is instructive that the brief bounce early this morning has already run out of momentum, having attempted and failed to break above ¥107.20, previously support at the end of May and now evidently resistance.

This would reinforce the bearish view as the current pullback continues. We need to see at least a move above ¥107.30 to suggest the bullish case has recovered some momentum.

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