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

Dollar weakness continues to be the rule, with USD/JPY under pressure once again.

Euro and dollar
Source: Bloomberg

EUR/USD in a comfortable uptrend

Weakness for EUR/USD is short-lived, as the push above $1.17 is confirmed. The near-term areas to watch are $1.1650 and then $1.1616, with no end in sight to the ‘buy on the dips’ approach here.

A close below $1.1470 is needed to put a dent in the overwhelming uptrend here.

GBP/USD holding on to $1.31

GBP/USD continues to cling on to $1.31, with the recovery back above $1.30 suggesting that further gains are likely and may result in a challenge of the $1.34 area, not seen since September last year.

The rising 100-day simple moving average (SMA), currently at $1.2786, would provide a good test of the trend, with a bounce off this level, as we saw in June, providing a potentially more attractive buying opportunity. 

USD/JPY remains bearish

Hopes of a turnaround for USD/JPY were dashed last week, with a push to the 200-day SMA (¥112.18) bringing out the sellers.

A drop below ¥110 would then raise the prospect of a dip to ¥109 and ¥108. A close above the 200-day SMA is needed to negate the bearish view.  

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