EUR/USD drops back as GBP/USD and USD/JPY rally

USD/JPY has seen a huge move to the upside, challenging the ongoing downtrend once more, while EUR/USD falls back from Monday’s highs and GBP/USD keeps pushing higher.

EUR/USD falters after hitting $1.19

EUR/USD rallied to $1.19 yesterday before dropping back, but the overall recovery remains in place.

Further gains will need to see a move above $1.1917 to signal that a break to the upside is now firmly in play, however, or the current range between $1.16 and $1.19 will prevail and a turn lower becomes a distinct possibility.

GBP/USD pushes to new higher high

The volatile uptrend continues here, as GBP/USD shakes off last week’s swings to push towards $1.32 and a new high in its upward move from late September.

A close above $1.32 leaves the price targeting the August peak towards $1.35. A reversal below $1.31 increases the possibility of a substantial retracement towards rising trendline support.

USD/JPY surges to 50-day SMA

Yesterday saw the price of USD/JPY surge from a lower low near ¥103.00 back to the 50-day simple moving average (SMA) of ¥105.26.

This return towards trendline resistance may mark a bigger shift, given the speed and rapidity of the move, but a rally through ¥106.00 would still be needed to break the sequence of lower highs seen in recent months.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.