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

The euro has faltered once again, while a rally in USD/JPY appears to be petering out. 

EUR/USD creates new lower low

Sellers came in yesterday to knock EUR/USD back from $1.2350, and the subsequent drop created a lower low at $1.2240.

Below this, $1.2165 comes into view. A move above $1.24 is still needed to break the downtrend that is still in effect.

GBP/USD stuck in place

GBP/USD has recovered from small losses in the wake of yesterday’s consumer price index (CPI) reading, but it still remains stuck below $1.4070.

A break above here targets $1.4145 and then $1.43. The pair has steadily gained ground since the $1.37 lows in March, and a move below $1.3880 is needed to suggest the sellers are back in control.

USD/JPY declines further

The bounce from the ¥105.60 level appears to be fizzling out for USD/JPY, and now further declines will test the ¥105.20-¥105.60 area, which has been significant support since mid-February.

Above ¥105.50, the recent peak at ¥107.30 comes into view. 

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