EUR/USD and GBP/USD rally, while USD/JPY is held below resistance

The euro and sterling continue to rally against the dollar, while the greenback remains constrained by resistance against the yen.

EUR/USD returns to March peak

EUR/USD has rallied back to the area of resistance last seen at the end of March, providing an interesting moment for shorts.

A reversal back below $1.10 would needed to confirm that a bigger decline is at hand. Rising support from mid-March would come into play in the event of a deeper pullback, although this may not come into view around $1.085. Above $1.11, the price heads towards $1.14.

GBP/USD spike at risk of turning lower

GBP/USD has rallied towards the 100-day simple moving average (SMA) at $1.2570, but with the longer-term downtrend in place a possible reversal could bring out the bears once again.

Alternatively, a further rally through $1.26 then targets the 200-day SMA at $1.2664.

USD/JPY still testing resistance

While USD/JPY has rallied overnight, the area around ¥107.80 continues to act as resistance, as it has done since early May.

A move through ¥108.70 will bring a move towards ¥109.20, last seen in early April, with the potential for it to be a dramatic move given how strong resistance has been over the past month.

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