EUR/USD and GBP/USD weaken, while USD/JPY begins to rise

The big news in forex markets has been the YouGov seat projection, which has hit GBP/USD hard. Meanwhile, USD/JPY is continuing to rally off the 50-day SMA.

EUR/USD hits trendline resistance

The EUR/USD pair has continued to weaken overnight, after a rally towards $1.11 ran out of momentum and created a lower high.

Lower highs have been seen since 4 December, so a rally through trendline resistance of the past week needs to break the growing negative short-term view. Further losses target $1.1055 and then $1.10. A break above $1.112 would open the way to the 200-day simple moving average (SMA) at $1.1156.

GBP/USD hit by polling news

Last night’s YouGov seat projection prompted a sharp drop in GBP/USD, driving the price back from $1.32.

Below $1.31 the price will head towards $1.304, and then to $1.2976. A move below here would signal that a much deeper retracement is developing, although the uptrend from the August lows is firmly intact.

USD/JPY aims to continue Wednesday's gains

Yesterday witnessed a USD/JPY bounce off the 50-day SMA (¥108.58), and while the price has retraced slightly, if it can hold the sequence of higher lows seen over the past two days this week then a buying opportunity on the daily chart may develop.

Longer-term gains head towards ¥109.50, the high from the end of November. A break below ¥108.50 provides a more bearish short-term view.

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