EUR/USD rallies, along with GBP/USD, but USD/JPY falls back

There is no sign of a reversal lower in EUR/USD, while USD/JPY keeps falling.

EUR/USD climb continues

EUR/USD has returned to the $1.20 area, and has also managed to move back above the 50 day simple moving average (SMA) at $1.1963.

The rebound shows little sign of slowing, and a break back above $1.20 would reinforce the view that a renewed move higher is beginning. Sellers will be on watch for a reversal back below $1.195 that could spark a renewed move lower and breathe new life into the pullback from the January highs.

GBP/USD attempts to rally

The small rebound of GBP/USD from the lows of last week continues, but without much enthusiasm it seems.

The ongoing downward channel remains in place, which means a move towards $1.385 could hit resistance and be followed up by a turn lower. A break above $1.387 would provide a more bullish view and open the way to $1.40.

USD/JPY continues its poor run

USD/JPY has shown that the dollar weakness has continued throughout the week, with no sign of a reversal of the lower intraday highs that have dominated since the end of March.

This short-term weakness thus seems set to continue, unless and until the price begins a recovery that will see a new intraday higher high and is followed up by bullish crossovers in stochastics and moving average convergence/divergence (MACD).

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.