FX levels to watch: EUR/USD, GBP/USD and USD/JPY
After the turmoil earlier in the week, FX markets are seeing some cautious risk appetite.
EUR/USD consolidates its gains
EUR/USD has continued to rally, moving back to the $1.14 level. A move above here would suggest another attempt to clear the $1.15 area.
A turn lower targets $1.138 and then the $1.13 zone again.
GBP/USD on the up for now
GBP/USD has recovered from the flash crash, and is back above $1.267. Further gains target the area around $1.28, and the 50-day simple moving average (SMA) at $1.2775.
A close below $1.26 is needed to suggest a renewed push lower, towards $1.2528 and then $1.2475.
Short-term bounce boosts USD/JPY
USD/JPY has clambered steadily higher over the past two days, but now it is at risk of rolling over and heading lower once again. Rising support from the ¥106.50 level has held for now, so this needs to be broken to open the way to the downside, targeting ¥106.50 and then ¥105.00.
Meanwhile, a bounce targets potential resistance at ¥108.50.
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