EUR/USD holds support and USD/JPY hits resistance, while GBP/USD pushes higher

Forex markets are quiet ahead of ECB minutes and tomorrow’s key Jackson Hole speech, but some improvement in PMIs has helped EUR/USD to hold support.

EUR/USD holds above $1.107

For the moment the EUR/USD pair continues to find support around $1.107, as it did in early August.

A rally would require a move above $1.111, which has acted as resistance throughout the week. If this is accomplished then the $1.125 zone comes into play as a possible target to the upside. A move below $1.105 negates this more bullish thesis and signals that a move towards $1.085 is underway.

GBP/USD still on the up

GBP/USD continues to adhere to rising trendline support from the 12 August low, pushing higher after a retracement from yesterday’s peak.

This short-term rebound would likely encounter resistance around $1.22 in the short term. A move below $1.21 begins to negate this more positive outlook, and a close below the Tuesday low of $1.2063 would hand the initiative to the bears.

USD/JPY looks to test resistance

The USD/JPY pair continues to be stuck below ¥106.70, the area of resistance that has held for over a week.

But with higher lows in place over the past few days. A push through ¥106.80 would provide a more bullish view, leading the price on towards ¥107.50 and then on to ¥108.50. The short-term bullish view would remain in place unless the price moves back below ¥106.00, in which case the longer-term bearish view reasserts itself.

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