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

Dollar weakness is being felt across all markets, sending cable and EUR/USD soaring. 

USD/JPY notes
Source: Bloomberg

GBP/USD climbing up

Dollar weakness continues to drive the move higher for GBP/USD, with some resistance this morning at the first weekly resistance pivot ($1.2497).

However, the fact it broke through the trendline resistance from the February high reinforces the idea we will see fresh strength, with upside targets at $1.2561 and then $1.2706. As ever, it will pay to watch how the price behaves in any sell-off, but if the dip from the beginning of the week is a sign, then dips should be firmly bought.

EUR/USD ready for more gains  

EUR/USD is seeing some profit taking after another leap higher, but as with cable, the break of trendline resistance yesterday reinforces expectations for more gains.

There is some potential resistance around the late January high of $1.0830, but it looks like dips will continue to be bought. Above $1.08, $1.0950 and then $1.1150 come into play as potential targets.

USD/JPY in the hands of sellers

We have seen USD/JPY push below the key ¥111.63 level, which defined the low in January and February. This break could open the way to ¥107.50 and then ¥105.53.

Having broken previous support, we now look for a lower low and then the retracement, but as long as the price fails to recover ¥113, it looks like the sellers are in charge.

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