EUR/USD tiptoes higher but GBP/USD and USD/JPY fall again

The euro is rising from overnight lows, but both GBP/USD and USD/JPY are under pressure in trading this morning.

EUR/USD recovers for now

The EUR/USD pair has rebounded over the past 24 hours, but the near-term direction depends on what the European Central Bank (ECB) head Mario Draghi has to say.

The recovery above the 50-day simple moving average (SMA) of $1.122 is a positive sign, with further gains targeting $1.13 and then $1.135. If this rally from $1.12 is a higher low then a more bullish view begins to emerge. Failure to push above yesterday’s high at $1.125 would suggest a move back below $1.12 and back down to $1.112.

EUR/USD chart Source: ProRealTime

EUR/USD chart Source: ProRealTime

GBP/USD hits new low for the year

GBP/USD slumped through $1.26 yesterday, as markets continue to worry about the prospect of a Boris Johnson premiership.

The next area of support will be the lows of December around $1.246. Yesterday’s drop from $1.26 sends a signal that the bears are firmly in control, and a recovery above here is needed to suggest a tentative change towards a more bullish view.

GBP/USD chart Source: ProRealTime

GBP/USD chart Source: ProRealTime

USD/JPY bears take back control

It seems hopes of continued gains have been dashed it seems for USD/JPY, as the price slumps back towards ¥108.20, the lows of the past week.

With the price now heavily oversold intraday, a short-term rebound is possible, but it requires a move back above ¥108.70 to suggest that the buyers are still in charge. Below ¥107.80 the price heads towards ¥106.80 and the 3 January low.

USD/JPY chart Source: ProRealTime

USD/JPY chart Source: ProRealTime


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