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

Dollar strength has returned thanks to Fed policymaker comments, with the result that USD/JPY continues its uptrend. 

All trading involves risk. Losses can exceed deposits.
Pound and dollar
Source: Bloomberg

GBP/USD

GBP/USD is weak before retail sales data, but it is dangerously close to key support at $1.4050, the low from 16 March. If this holds we could see a bounce back towards $1.42, and then perhaps on towards $1.4320.

A break below this risks opening a trap door to the February lows around $1.3840.

GBPUSD

EURUSD

EUR/USD has run to its rising trendline and indeed has moved briefly below it so far this morning.

If it can move back towards the 200-hour simple moving average ($1.12) then we could see dip buyers return and continue the sequence of higher highs and higher lows, with an initial target of $1.1250 and then on to the month highs near $1.1350.

eurusd

USD/JPY

Dollar strength continues here, lifting the pair back to its highest level since 16-17 March.

A break above ¥113 would then head towards ¥114, as previously thought. Dips towards the ¥112.40 area should continue to be bought. 

usdjpy

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