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

Momentum has stalled in EUR/USD and in cable, but USD/JPY seems happy to push higher for now. 

Euro note and pound coin
Source: Bloomberg

EUR/USD awaiting ECB meeting

EUR/USD has failed to break above $1.0950, the high set yesterday, although for the moment the March high at $1.0906 is providing some support in the short term.

Indecision is likely to prevail as the European Central Bank (ECB) meeting nears, so we could see the pair move into consolidation mode. Below $1.0906, the pair could see a drop to previous support at $1.0829.

GBP/USD still stuck

Gains for GBP/USD continue to peter out around $1.2850, while support at $1.2775 still holds. A resolution of this situation is still awaited to indicate the next move.

Positioning continues to suggest upside for sterling, but we could see a drop back towards the rising trendline, implying a steady drop in the direction of $1.2650.

USD/JPY going higher 

The pair is approaching the ¥111.68 level, which provided key support in the first quarter. Above this is the 50-day simple moving average (SMA) at ¥111.86, which could act as resistance.

Further gains would carry USD/JPY to the downtrend line off the January highs, towards ¥113.50. Any failure to push above ¥111.68 could suggest the pair has topped and is about to begin a new leg lower. 

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