EUR/USD and USD/JPY stalled, while GBP/USD still on the up

Gains in EUR/USD and USD/JPY have stalled, but there seems little sign that the bounce in GBP/USD has run its course yet.

Rally in EUR/USD pauses

EUR/USD continues its rally, although it has stalled over the past two days.

We could see a pullback towards $1.107 and the 200-day simple moving average (SMA), which would leave the rally intact and also provide a strong buying opportunity. A move through $1.118 would breach the highs from Friday, and would bring the 200-day SMA into play at $1.1209. A move back below $1.106 would arguably indicate that a lower high has been created and that a fresh downward move is underway.

GBP/USD still on the up

There has been little stopping GBP/USD over the past few days and, so far, there seems no sign that the bounce has come to an end.

Dips towards the 50-hour SMA (currently $1.2939) have provided support, so a move below this would be viewed as negative in the short term. Further support is possible around $1.277 and $1.264.

USD/JPY stalled below ¥109

After rallying sharply over the past three weeks, USD/JPY has run into some resistance below ¥109.00.

Gains from the low at the beginning of Monday’s session have stalled at ¥108.70, and further declines would test support around ¥108.00. As has been the case since July, a close above ¥109.00 is needed to open the way to a fresh rally, with the price having been stuck below the 200-day SMA (¥109.06) since May.

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