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

After some post-FOMC strength, the US dollar is under pressure.

EUR/USD rebounds in early trading

Having dropped sharply in the wake of the Fed decision, EUR/USD has promptly recovered all its losses and is making another attempt to clear $1.14 and hold above the 50-day simple moving average (SMA) of $1.1389.

Near-term targets to the upside are $1.1470, $1.15 and then $1.1554. The pair has built a firm base around $1.13, so above this level dips should continue to be bought.

GBP/USD looks to break higher

Having been knocked back yesterday, GBP/USD is breaking higher and testing the descending trendline from the November highs.

Above $1.27, the price will head to $1.28 and then on to $1.29. Dips towards $1.26 may prove to be fresh buying opportunities.

USD/JPY hits fresh lows

USD/JPY has broken below the ¥112.20 support area, and while a rebound from intraday oversold levels is possible, it looks like this will be another selling opportunity.

Downside targets now lie at ¥111.40 and then the 200-day SMA at ¥110.87.

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