GBP/USD rallying, while USD/JPY hits trendline support

EUR/USD and GBP/USD continue to push higher, while USD/JPY is aiming to hold rising trendline support from the August low.

EUR/USD looks to push higher

The EUR/USD has recovered to sit above the 50-day simple moving average (SMA) of $1.1043, having created a higher low last week around $1.10.

Further upward momentum will see the price challenge the $1.1175 peaks from October, and above this a higher high is created, helping to reinforce the more bullish view. A reversal below $1.10 would be needed to reverse this outlook and suggest a renewed push lower is underway.

GBP/USD targets $1.30 again

The GBP/USD bulls will be looking for the pair to maintain its progress towards $1.30, which has held back progress since mid-October.

The price has been rallying since early October, and if the price can clear $1.30 then it has a chance to target $1.317 and $1.33. A more bearish view would require a daily close below $1.277, so until this happens any drop towards this support zone would be a restatement of the $1.277-$1.30 trading range of the past month.

USD/JPY aims to hold rising trendline

The USD/JPY uptrend has weakened here, but over the past few days the price has stabilised around rising trendline support, with dips towards ¥108.20 finding buyers.

If it can recover above ¥109.00 then a renewed push higher would be in the offing. A bigger retracement would develop if the price drops through the 50-day SMA at ¥108.25.

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