EUR/USD and USD/JPY move higher, but GBP/USD still under pressure

EUR/USD has managed to hold key support from April and May, while the rally in USD/JPY goes on as it approaches the highs last seen at the beginning of the month.

EUR/USD edges off key support

The EUR/USD pair has found a bottom around $1.1118, the lows that held in April and May.

If a bounce begins from here then it may encounter resistance around $1.12, trendline resistance from the June high. A break above $1.122 signals a more bullish view has developed. For the moment the price is holding $1.1118, but a break below this targets $1.10 and $1.085.

GBP/USD still under bearish pressure

Rallies in sterling at present seem to have very short lifespans. The sharp declines of the past two days demonstrate strong bearish momentum for GBP/USD, so it will need a substantial recovery to suggest that a short-term bottom is in.

In the meantime, a bounce towards $1.225 may provide another selling opportunity.

USD/JPY returns to early July peak

The rally here for USD/JPY has continued, establishing new higher highs and higher lows on the hourly chart.

The price has returned to the ¥109.00 area which marked the peak in early July. A push above here signals that fresh bullish momentum is in evidence. Having dropped back overnight, the price now appears to be forming a higher low around ¥108.50, so if this holds then a push higher above ¥109.00 may develop. Alternately, further declines head towards ¥108.40 and then ¥108.10.

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