EUR/USD and GBP/USD move higher but USD/JPY comes under pressure

FX markets have been calm in early trading, but sterling has managed to make a small dent in recent losses against the dollar.

EUR/USD edges towards $1.19

The steady recovery from the lows of last week continues for EUR/USD, but it is beginning to show signs of slowing down.

Short-term weakness may encounter support around $1.17, but unless this level is broken any bigger drawdown is unlikely. Meanwhile, further gains continue to target $1.20.

GBP/USD rises off support

The precipitate downward move appears to have halted for now for GBP/USD. A bounce from $1.277 does not yet change the overall negative view; this would require a move above $1.29, breaking trendline resistance from the September peak.

This would then bring $1.303 and $1.32 into view. A drop below $1.277 signals a resumption of the downward move.

USD/JPY steady after decline

A drop early on in Tuesday’s session saw the USD/JPY pair take out last week’s low, but for now it has found support at ¥105.50.

Below this ¥105.24 and then ¥104.80 come into view. The broader downward move is still in place, with a rally above ¥106.50 needed to provide evidence of any upward momentum.

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