EUR/USD and GBP/USD stall as USD/JPY continues to head lower

Rallies in EUR/USD and GBP/USD have run out of steam, but the rapid downward move in USD/JPY shows no sign of stopping.

Transcript

EUR/USD looks to reverse Wednesday weakness

EUR/USD edged back from $1.19 over the past two days, with a downward move in yesterday’s session.

A reversal back above $1.19 would be the starting point of a more bullish move that could see the $1.20 level tested. Alternatively, we look for a modest retracement towards $1.175, with a more bearish view taking us back towards $1.16 and the lower bound of the range that has prevailed for the past four months.

GBP/USD stalls below $1.33 again

GBP/USD’s push higher ran out of steam at $1.33 yesterday, as it did last week, providing an indication of further selling pressure from here.

A deeper move below $1.315 would raise the risk of a near-term double top, with a drop below $1.31 providing confirmation of this. A rally through $1.33 provides a new bullish catalyst and opens the path to $1.347 and the September high.

USD/JPY downtrend firmly back in play

Monday’s brief bounce is a distant memory, as USD/JPY heads back towards the month low at ¥103.20.

The longer term downtrend has reasserted itself this week with the reversal below the 50-day simple moving average (SMA) of ¥105.03 that created another lower high.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.