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

A mixed bag sees a bullish EUR/USD, a bearish GBP/USD and a neutral USD/JPY view, with the directional bias yet to be firmly established.

EUR/USD looking up

EUR/USD managed to break above $1.1812 yesterday, bringing a more positive outlook for the pair after a deep retracement into the $1.1715 support zone. That provides us with a bullish outlook, with last night’s retracement looking like a precursor to further gains.

We are seeing those gains come to the fore this morning, with a rally up through yesterday’s high of $1.1834 likely in the short term. The next hurdle would be $1.1863. A bullish outlook is in play, as long as we do not break back below $1.1742. 

GBP/USD looks set for further downside

GBP/USD managed to regain ground yesterday, with the price retracing 70% before turning lower.

There is a chance we could see a move into the 76.4% region. Yet, in either case, a bearish outlook remains in place unless we push above $1.3467.

USD/JPY triangle consolidation in place above key support

USD/JPY is consolidating, following a rally up from the crucial ¥112.00 support region.

A break below that level would provide a bearish picture, given the completion of a head and shoulders formation. Alternatively, an hourly close above ¥112.83 would provide a more bullish view.

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