Weaker dollar lifts EUR/USD and GBP/USD, putting pressure on USD/JPY

The Fed meeting has removed some of the dollar’s strength, allowing EUR/USD and cable to rally, but leaving USD/JPY out in the cold.

EUR/USD recovers its bullish momentum

The EUR/USD pair shot higher yesterday, returning to the $1.117 level from last week. Dips towards $1.112 may well find support, while a breakout above $1.118 would open the way to the 200-day simple moving average (SMA) at $1.12.

A move below $1.104 would be needed to reinvigorate the downtrend.

GBP/USD continues rebound from $1.280

Having found support around $1.28, the GBP/USD pair has now resumed its march higher. The next target is $1.30, and intraday pullbacks may continue to find buyers. Above $1.304 the price heads towards $1.32.

A close below $1.277 is needed to revive a more bearish view, although even then any higher low above $1.22 might be viewed as a buying opportunity.

USD/JPY edges lower

Post-Federal Reserve (Fed) dollar weakness continues, as the USD/JPY price retreats once again from ¥109.00. This may see a retracement towards ¥107.60, which would still leave the price in a strong uptrend from the August lows.

Intraday support has been found around ¥108.30 over the past two weeks, so if this holds a rebound could develop.

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