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

The euro has fought to hold vital support, while cable is still on a downward trajectory.

EUR/USD holds critical support

EUR/USD remains at the crucial area of support around $1.1554, which held back in late August. While it dipped below this yesterday, the rebound saw it finish around the same level.

A rally targets $1.18, where gains faltered in July and in September. A close below $1.1554 is needed to open the way to fresh downside.

GBP/USD on a downward path

GBP/USD lost the rising trendline that had held since mid-August, continuing its decline from $1.33.

Further losses will target $1.2940, the low from Tuesday, and then below this, $1.2773. A recovery above $1.3121 would be needed to suggest that the buyers are back in charge.

USD/JPY continues upwards

After yesterday’s small move lower we have seen a recovery for USD/JPY, holding the ¥113.64 level.

A fresh push above ¥114.00 targets ¥114.50, which had been significant resistance throughout 2017. A deeper pullback below ¥113.64 would target rising trendline support from the March lows, around ¥112.00.

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