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

EUR/USD and GBP/USD are gaining ground, yet this upside could be limited. Meanwhile, USD/JPY is breaking lower, likely marking the beginning of a bearish phase for the pair.

EUR/USD pushes through near-term resistance

EUR/USD has managed to rally through the near-term resistance level at $1.1645. This points towards the potential for further short-term upside, coming off the back of a failed attempt to break the May low of $1.1510.

A wider bullish view would come into play with a rally through $1.1852, but until then we remain within a wider downtrend. As such, while we could see short-term upside, there is a good chance we are looking at a short-term retracement of the $1.1852-$1.1510 sell-off.

GBP/USD turning lower from Fibonacci resistance

GBP/USD managed to rally towards the end of last week, with the price pushing into the 61.8% Fibonacci resistance on Friday.

In a similar manner to the move seen in EUR/USD, there is a good chance we could be seeing a retracement set within a wider downturn. A rally above $1.3447 would be required to signal the beginning of a wider bullish phase. Until then, this near-term upside is unlikely to last.

USD/JPY falls out of recent uptrend

USD/JPY has broken below the ¥109.55 support level this morning, negating the uptrend that has been in place over the past month.

This points towards further downside to come, with a break above the most recent swing high of ¥110.22 required to bring back a more neutral outlook. A break above ¥110.75 would be needed for a bullish view to come into play. Until then, further downside looks likely, with ¥109.20 being the next key support level to watch. 

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