EUR/USD edges down as GBP/USD and USD/JPY move higher

The euro has fallen back against the US dollar, with USD/JPY rebounding for the time being.

EUR/USD edges back below $1.23

After moving up for three days, EUR/USD has edged back down again, but it has still managed to create a new higher high in its ongoing rally.

For the moment this drop appears to be just a short-term decline – a more bearish view would come into play with a drop below $1.22, which would also result in a break below rising trendline support from early December.

GBP/USD holds above $1.35

GBP/USD gains since Monday’s drop have failed to recover the highs from that session, but so far the downside has been limited, with losses contained above $1.354.

Further gains continue to target $1.3711, while a drop below $1.347 would likely signal the beginning of a deeper retracement that targets the rising 50-day simple moving average (SMA) at $1.3335.

USD/JPY rebounds from lower low

After hitting a nine-month low on Tuesday the USD/JPY price has bounced, as may have been expected following the recent poor run in late December.

Previous rallies have run out of steam near the 50-day SMA (¥104.02) so this is an area to watch in the event of further near-term gains.

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.