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

The overall bearish view on EUR/USD and GBP/USD persists, as downward momentum prevails.

EUR/USD’s bounce fizzles out

The price has rebounded from support around $1.13, but there seems little upside for EUR/USD in the near term.

The overnight bounce has stalled below $1.14, so a move above here would clear the way to $1.1450, and then back to the key $1.15 zone. A further decline below $1.13 would target $1.11, the June 2017 low.

GBP/USD still unable to rally

While the price has moved off yesterday’s lows, GBP/USD remains in a bearish mode.

A close above $1.2830 might suggest some near-term bullish strength, pushing the price back towards $1.3040. A further decline below $1.2635 targets $1.2589 and then $1.2366.

USD/JPY upside limited for now

USD/JPY continues to be constrained by descending trendline resistance from the July high.

Since the beginning of July the ¥110.28 level has acted as support, so if this holds a push higher is possible, but a move above ¥110.90 is needed first. From here ¥111.40 and then ¥112.00 come into play. Below ¥110.28, the price will head back towards the June support zone of ¥109.00.

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