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

EUR/USD and GBP/USD are both pushing higher yet again today, with rising channel formations continuing to dominate. Meanwhile, overnight gains in USD/JPY look to provide us with a good shorting opportunity.

EUR/USD pushing higher within channel

EUR/USD continues to respect an ascending channel formation as we move into the new week, with the price heading towards the 76.4% retracement yet again.

The ascent we have been seeing so far throughout June could prove to be a retracement of the decline from $1.1996, thus highlighting the importance of the 76.4% retracement ($1.1881) as the next major point of resistance. A break above that $1.1881-$1.1996 region would point towards a wider retracement into the $1.2150 area. Until then, the rising channel continues to provide a bullish outlook, unless we fall below $1.1727.

GBP/USD turning higher once again

GBP/USD is also continuing its retracement of the May decline, with the price back into the 61.8% level that was closely respected last week.

This points towards a potential move into the 76.4% retracement at $1.3520, where a break back below $1.3354 would be required to signify a more bearish outlook.

USD/JPY rebound unlikely to last

USD/JPY has managed to rebound at the start this new week, as the pair attempts to break out of the bearish shift seen on Friday. However, that break below ¥109.47 points towards this current rebound being a likely retracement before we turn lower once again.

With that in mind, a bearish outlook is in play, with the price expected to respect the 76.4% retracement for a move lower. That deep retracement means we have a good risk-to-reward opportunity from current levels. A break above ¥110.27 would point to a shift towards a more bullish outlook.

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