Rising dollar boosts USD/JPY but sends EUR/USD and GBP/USD sharply lower

The greenback is enjoying some notable strength, which is helping the currency to an 18-month high against the yen, while causing sharp losses for the euro and sterling against the US currency.

EUR/USD hit hard on rising dollar

The sellers are firmly in control here as the EUR/USD price slumps to its lowest level in over a year.

Having broken below a series of support levels the next target may well be $1.144 and then $1.139, last seen in June and July 2020. So far there is no sign of any recovery, which would require at least a move back above $1.17.

GBP/USD slumps as greenback strengthens

Dollar strength has made itself felt here too, pushing GBP/USD to its lowest level for the year.

A wide gap to the next potential support level at $1.32 now looms, with short-term rallies likely to provide further selling opportunities so long as the price remains below $1.36.

USD/JPY rallies to fresh highs

The dollar continues to climb, boosting USD/JPY to its highest level since February 2020.

How far this move goes before it weakens remains to be seen, but elevated stochastics point towards strong bullish momentum. Some retracement back in the direction of ¥111.50 might provide a further buying opportunity.

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