​​EUR/USD, GBP/USD under pressure while USD/JPY rises ahead of US NFP

​​​EUR/USD resumes its descent ahead of Eurozone inflation data

EUR/USD's bearish reversal off its December $1.1139 high, made near its 27 July high at $1.1149, has so far taken it to Wednesday’s $1.0894 low as excessive rate cut expectations were pared back and yields rallied. This low is back in sight as the cross resumes its descent after a pause on Thursday as German retail sales fall far more than estimated by 2.5% instead of a forecast 0.1% decline.

​Eurozone consumer price index (CPI) will be watched closely and a fall through $1.0894 could lead to the 200- and 55-day simple moving averages (SMA) at $1.0848 to $1.0841 being reached.

​Resistance above the December-to-January downtrend line at $1.0956 can be found at Thursday’s $1.0972 high ahead of more significant resistance which sits between the $1.1009 to $1.1017 November and mid-December highs.

​GBP/USD hovers above this week’s low

​GBP/USD's bearish reversal from its five-month high at $1.2828, made in late December, took it to this week’s low at $1.2611 before it recovered.

​A rise in UK house prices for the first time in eight months has helped the cross to hold for now, ahead of this afternoon’s closely watched US Non-farm payrolls (NFP).

​The November-to-January uptrend line at $1.264 may offer support ahead of $1.2611. If fallen through, though, the 200-day SMA at $1.2533 and the December low at $1.2501 would be eyed.

​Minor resistance lies at Thursday’s $1.2730 high.

​USD/JPY on track for fifth day of gains

​The swift rally in the USD/JPY pair amid reassessed US rate cut expectations has led to four straight days of gains with a rise above the 19 December high at ¥144.95 currently being seen despite Japan consumer morale hitting its highest level in two years.

​The next potential upside targets are the 11 September low at ¥145.91, followed by the 11 December high and 55-day SMA at ¥146.59 to ¥146.90.

​Good support is seen along the 200-day SMA at ¥143.26.