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

EUR/USD is seeing another brief retracement, but remains within an uptrend, while USD/JPY has failed to break above key resistance. 

GBP/USD notes and coins
Source: Bloomberg

EUR/USD in retracement today

EUR/USD touched its highest level since early October on Friday, so it is no surprise to see a retracement develop today, with an almost empty economic calendar adding to the drift.

Dip buyers came in around $1.10 on Thursday, so any pullback that stays above this level will be defined as a higher low. A move above Friday’s high of $1.1212 will still target $1.13 and then $1.1366.

GBP/USD - a broader drop towards $1.2835 on the way?

GBP/USD keeps running out of steam above $1.30, so a continued failure here raises the risk that we will see a broader drop to the post-March rising trendline, towards $1.2835.

Any break above $1.3060 could trigger a bigger rally in the direction of $1.3427. It would take a move back below $1.2775 to suggest a change of direction.

USD/JPY - a new leg lower at ¥110.11?
Thursday and Friday saw repeated attempts to break above ¥111.68, but the rally fizzled out. Thus we could see a new leg lower, in the direction of support at ¥110.11 for USD/JPY

Below this we have the 200-day simple moving average (SMA) at ¥109.80, and then on to the ¥108 low from mid-April. It needs a close back above ¥111.68 to suggest a turnaround is in the offing. 

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