EUR/USD and USD/JPY fall as GBP/USD moves sideways

EUR/USD’s sharp bounce has firmly ended now, and we are seeing further downside for this pair, as well as for USD/JPY.

EUR/USD downtrend intensifies

The direction of travel for EUR/USD over the past three sessions has been downward, with the price forming lower highs and lower lows.

Short-term trendline resistance may come into play around $1.098, while further declines below $1.09 head towards $1.075 and then $1.064. Above $1.098 the price targets $1.105, the previous lower high, and then on to $1.115 and the highs from 30 March.

GBP/USD drifts sideways

GBP/USD has moved sideways over the past week in a tightening range, so far unaffected by the modest renewal in USD strength.

Losses below $1.23 have been prevented, with buyers stepping in to defend this area, while any rally above $1.24 of late has proven short-lived. Below $1.23, risks a revival of the downward move towards $1.16, while above $1.24 the price heads towards $1.2635 and then $1.277.

USD/JPY under pressure

The move lower for USD/JPY looks to be resuming, as the price manages only a slight bounce from the lows of yesterday.

A drop below ¥107.00 would confirm the more bearish view and suggest a deeper decline towards ¥105.00. A more bullish view requires a substantial revival, targeting the ¥108.60 highs from earlier in the week.

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