FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Both the euro and sterling have pushed higher at the beginning of the session, despite the lack of economic data.

Euro and dollar notes
Source: Bloomberg

EUR/USD moving forward

EUR/USD recovered strongly on Friday, having spent the latter part of last week forming a base around $1.0850. Having broken through $1.09, the price is now looking to move above $1.0950, and then on to $1.10.

A failure here and turn back below $1.09 would suggest a drop back to $1.0850 and then potentially to $1.07. 

GBP/USD eyeing new gains

Support at $1.2846 held firm last week for GBP/USD despite a mixed update from the Bank of England (BoE). With this support still in place it looks likely to challenge the $1.2965 - $1.30 area.

A rally through here would confirm that the March uptrend is still in place, with the consolidation of the past few weeks giving way to fresh gains, potentially on to $1.3058 and even $1.3427.

USD/JPY remains fragile

A bounce for USD/JPY from oversold intraday levels will give some hope to the bulls that the losses from the end of last week will be recovered.

Certainly, the intraday trend is still not broken, with a close below ¥113 needed for this to start becoming a reality. If the recovery falters below ¥114, then there is the potential for a move below ¥113 to start a move towards the 50-day simple moving average (SMA) at ¥111.72. 

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