EUR/USD and GBP/USD under pressure, as USD/JPY bounces

Dollar strength has enabled a small recovery in USD/JPY while putting more pressure on EUR/USD and GBP/USD overall.

Transcript

EUR/USD edges off lower channel bound

EUR/USD remains under pressure overall, firmly within a downward channel although a small bounce off the lows has taken place.

A small recovery would target the highs from last week around $1.18, building on the bounce of support from $1.17.

GBP/USD heading firmly lower

GBP/USD’s signs of a bounce have been negated by the drop below the 200-day simple moving average (SMA), as dollar strength comes into play once again.

Further declines target $1.37 and then $1.36. For the moment, the sellers are firmly in control, with any bounce needing to move back above $1.386 to develop a more bullish view.

USD/JPY bounces from support

USD/JPY has rallied from the broad support zone around ¥109.00, providing hope for bulls that a rebound may develop.

This would target ¥110.60 in the first instance, where gains stalled throughout July and August. For now, the continued defense of ¥109.00 leaves the buyers with the upper hand, but this would begin to change with a drop below ¥108.70.

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