FX levels to watch – EUR/USD, USD/JPY

EUR/USD has begun showing signs of weakness, while USD/JPY looks set for further upside.

Source: Bloomberg

EUR/USD recovery takes a hit

EUR/USD has been weakening overnight with the pair falling below the crucial $1.1829 level, following a break below trendline support.

This points towards a heightened chance of further downside for the pair, with the price seemingly respecting the previous resistance level of $1.1862. A break above $1.1880 would negate this short-term bearish view.  

USD/JPY looks to continue recent gains

USD/JPY pulled back into the 76.4% retracement overnight, with the pair subsequently turning higher once more.

The ability to remain above ¥113.20 will be key to maintaining the recent ascent, and until that happens, a bullish view is in place. The ability to break through ¥113.75 will provide a bullish wider view, yet for now, short-term gains seem likely. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about