EUR/USD and GBP/USD still in bullish form, as USD/JPY edges higher

The bounces in EUR/USD and GBP/USD seem set to continue, while USD/JPY is looking to recover recent losses.

Transcript

EUR/USD surge intact

While EUR/USD edged back yesterday, the bullish thrust of the last two days of last week remains intact, having firmly cancelled out the bearish view with the recovery back above $1.20 and $1.21.

Further gains need to clear $1.22, a key area of resistance since the beginning of the year, and would then open the way to the $1.235 highs from the end of 2020. Sellers will need to find a way to drive the price back below $1.205 to suggest that a reversal is in play, but for now the buyers are firmly in charge.

GBP/USD in full rally mode

GBP/USD’s surge over the previous two sessions has left investors scrambling for a fundamental reason. But, on a price basis, the breakout above $1.40 restores a bullish view and arguably brings the March-May consolidation to an end, reviving the uptrend.

The February high above $1.424 comes back into view, and elevated stochastic readings point towards strong bullish momentum. The bearish view has been put on ice for the time being, and will only be revived with a move back below $1.39.

USD/JPY attempts to rebound

USD/JPY is doing its utmost to recover recent losses and restore the bounce from late April.

Further gains target ¥109.50, and a move above this would certainly put the bulls back in charge. Until then, the picture is more mixed, and sellers will want to reverse the bounce from Monday and push the price back below ¥108.50.

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