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

The euro is struggling, but the pound has managed to recover from some early lows.

EUR/USD bears back in charge

EUR/USD’s brief rebound of last week appears to have run its course, with the price back at the $1.1465 area that has held as support since last Wednesday.

Below this the pair will head towards $1.1296, retracing the entirety of the move from the August lows. So long as the price remains below $1.1554 then the outlook remains bearish.

GBP/USD still on the up despite weakness

While the price has dropped back from yesterday’s highs, the powerful rebound from $1.304 suggests the move higher will resume soon for GBP/USD.

Above $1.314, the price will head towards $1.32 and then the highs of September above $1.33. A close below $1.304 is needed to suggest the sellers are back in control.

USD/JPY takes on trendline resistance

Downtrend resistance at ¥113.50 will come into play if the bounce seen so far today for USD/JPY gathers momentum.

If it breaks higher, then ¥113.64 and then ¥114.50 are the next targets to watch. Further declines below ¥112.80 will open the way to ¥112.15 and then rising trendline support at ¥111.60.

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