EUR/USD falters, while GBP/USD rises and USD/JPY downtrend revives

FX markets have seen divergences in performance, with EUR/USD weaker ahead of the ECB, but GBP/USD still rising. Meanwhile, USD/JPY’s downtrend is back in action.

EUR/USD struggles to move higher

The bounce from the 50-day simple moving average (SMA) of $1.2091 has failed to make much headway, and the price of EUR/USD has fallen back from yesterday’s highs.

A full reversal has yet to take place, but a drop below $1.2054, the low from Monday, would certainly mark a more bearish development. One positive view would argue that the price has broken trendline resistance and having tested that from above yesterday is now poised to move higher.

GBP/USD testing highs around $1.37

The GBP/USD remains strong, pushing back to $1.37 and maintaining the uptrend of the past nine months.

Gains above $1.37 have proven hard to sustain since the end of December, so a breakout above this level will provide fresh bullish momentum. The price continues to adhere to rising trendline support from the November low, with no sign of any bearish momentum at present.

USD/JPY resumes downward move

The price of USD/JPY has moved back below the 50-day SMA, and with daily stochastics having rolled over as well it looks like a move back towards the lows of the month could now be in the offing.

Buyers have failed to hold the price above ¥104, and as a result further declines seem to lie ahead.

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