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

FX markets are back in ‘risk-on’ mode, as rallies in EUR/USD and GBP/USD continue.

EUR/USD rally moves into a fifth day

EUR/USD has climbed steadily over the past five sessions and is now headed towards the area around $1.1750 that has stifled progress since the beginning of July.

A close above $1.18 is needed to clear this zone of resistance and open the way to $1.1850 and then $1.20. A bearish view requires a close below $1.1550.

GBP/USD pushes higher

The breakout continues here for GBP/USD, with an elegant trend from the lows of mid-August still in play.

Dips towards $1.29 may well find buyers, while fresh gains will push the price towards the $1.32 level. Above here, the $1.3472 area is the next one to watch.

USD/JPY records new higher high

USD/JPY clocked up a new higher high in its rising trend from the August lows.

Yesterday saw the price push above the ¥111.80 high from late August, and while we have seen some weakness this morning, the overall push higher remains intact. Further gains target ¥113.00, while a drop back towards ¥111.00 may well see buyers emerge.

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