All trading involves risk. Losses can exceed deposits.
Over 40 years’ heritage
Over 185,000 clients worldwide
Over 15,000 markets

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

Despite recent strength, dollar weakness could be on the cards amid 76.4% retracements for EUR/USD and GBP/USD. Meanwhile, USD/JPY is turning lower from a major resistance level.

All trading involves risk. Losses can exceed deposits.
Yen
Source: Bloomberg

EUR/USD retraces into Fibonacci support

EUR/USD returned to the 76.4% Fibonacci support level yesterday, following a break below an ascending trendline earlier in the week. Given the break through $1.2070 resistance last week, the uptrend remains intact unless we fall below $1.1823.

With that in mind, there is a good chance we could see another move higher from here. A bearish view would only come from a move below $1.1823.

EUR/USD price chart

GBP/USD turning higher after yesterday’s pullback

GBP/USD sold off into the 76.4% retracement yesterday, with the pair turning higher since.

The uptrend remains intact and, as such, a bullish view remains in play unless we see a move back below the $1.3160 support level. 

GBP/USD price chart

USD/JPY weakening from key resistance level

USD/JPY has enjoyed a bullish week, with the risk-on move seeing people shift out of the yen. However, with the price having rallied into trendline resistance, there is a good chance we could see the pair weaken from here. Watch out for trendline support, which marks the first main hurdle to overcome.

Meanwhile, a break back below ¥109.90 would give greater confidence of a more protracted downward move. Given the potential for another North Korean nuclear test, there is reason to believe that any surprise could be bearish for this pair. A break above ¥110.67 would negate this bearish view.

USD/JPY price chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Education

  • Trading psychology

    Psychology is a key element of financial trading, and how you perceive and react to your trading can have a major impact on your success. In this module we go through some elements of trading psychology and identify a few common mistakes to watch out for.

  • Indices explained

    Find out the purpose of major and minor stock indices and how they are compiled. Learn how to gain exposure to these volatile markets through some of the most popular trading products in the world.

  • Commodities explained

    As the essential components behind just about every other product imaginable, commodities are vital to modern economies. Find out how these volatile yet invaluable natural resources fit into the wider trading world.