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

Both sterling and the euro have moved off the lows from Thursday’s session, while the Aussie has encountered key resistance.

Yen and US dollar notes
Source: Bloomberg

GBP/USD stays off weekly-lows

The pair was knocked back yesterday by news the prime minister will give a speech on her Brexit policy next Tuesday.

However, it found some support around $1.2150, crucially holding above the lows of the week at $1.2046. A further rally could target $1.2270 and then $1.2378. 

EUR/USD dip may offer chance to buy

After finishing off the highs yesterday the pair is steadily recovering, with the first target being at $1.0677, and then above here it could target $1.0737 and then $1.0790.

With the rally from the December lows intact, the latest dip may well be a buying opportunity, with a move below $1.05 needed to negate the current bullish outlook.

USD/JPY gains restricted by ¥115.15

USD/JPY hit support at ¥113.88 yesterday, and then rallied, but so far the ¥115.15 level is constraining any further gains.

A move above this could signal the pullback is over. However, this will only be confirmed with a daily close back above ¥116.

Below ¥115.15 the price may target ¥113.34 and then ¥111.16. 

AUD/USD looks to continue rally

The impressive rally here has carried the price all the way back to $0.75, last seen in mid-December.

Now it must post a close above this level to open the way to $0.7572. A failure to push higher today, and then a close below $0.7464, would suggest that the rally has come to an end. 

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