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

Dollar strength has put pressure on the euro and sterling, which are both seeing pullbacks for the time being.

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EUR/USD back below important resistance

The price continues to drop back for EUR/USD, having fallen below the key resistance zone around $1.185. The next areas to watch are $1.17, then $1.1662, and then $1.155.

A close below $1.1712 is needed to put an end to the rally from the November lows. A recovery above $1.1808 would be a good first step for the bulls, but there is still plenty of resistance that would need to be broken, at $1.1836, $1.1858, and then $1.188. 

EUR/USD price chart

GBP/USD drops towards trendline

The recent pullback here remains within the wider uptrend for GBP/USD.

It would take a move below $1.33 to break the rising trendline from the November lows, but even then, a close below $1.3221 would be needed to create a lower low. 

GBP/USD price chart

USD/JPY comes roaring back

We have seen a steady recovery over the past 24 hours for USD/JPY.

As a result, the price looks set to challenge the downtrend line from the November highs, which would suggest a test of resistance around ¥112.85. Above this ¥113.09, ¥113.33 and then ¥113.91 come into play. 

USD/JPY price chart

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