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

We have seen sharp reversals in EUR/USD and GBP/USD, despite the lack of change from the Federal Reserve last night. 

Pound and dollar
Source: Bloomberg

EUR/USD eyes $1.10

The $1.13 level remains as solid resistance — a push to it yesterday was swiftly knocked back, and now we look to see if the area around $1.1172 can hold as support.

If broken, then $1.1109 comes into play. A drop through this level could see the pair then head back to $1.10, and potentially lower.

GBP/USD eyes 50-day SMA

Like other currency pairs, cable reversed course yesterday, with this pair back below $1.28 once more. $1.2706 and then $1.2616 are now the levels to watch on the downside, with a break below the latter potentially opening the way to $1.2380.

We would need to see the price reclaim the 50-day simple moving average (SMA) at $1.2822 to become more bullish.

USD/JPY could drop to April low

The Federal Reserve's uninspiring meeting last night failed to provide much of a boost for USD/JPY. So far though the pair is exhibiting a marked reluctance to move below ¥109.

If this can hold then the possibility of a bounce rises, with ¥110.35 and then ¥110.84 in play as upside targets. A drop below ¥109 raises the prospect of a move to the April low at ¥108.13.

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