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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.