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).

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