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

Dollar strength remains the name of the game, with EUR/USD and GBP/USD weakness expected to be joined by a rally in USD/JPY.

EUR/USD falling back once again

EUR/USD is continuing its bearish surge, with the pair turning lower yet again after a brief bounce yesterday.

The break below the $1.1290-$1.1301 support zone points towards further downside to come, and with this latest turn lower it looks like we are not going to wait around for it to happen. As such, further downside looks likely from here, with continued creation of lower highs key to maintaining this downtrend. A break through $1.1342 would be required to bring about a more bullish short-term outlook.

EUR/USD chart

EUR/USD chart

GBP/USD looking likely to turn lower once more

A similar story for GBP/USD has seen the pair break into a new one-month low this week, with the price consolidating overnight.

This looks like a precursor to further downside, with a bearish view in play unless we see a break up through the $1.2959 resistance level.

GBP/USD chart

GBP/USD chart

USD/JPY expected to turn higher from here

USD/JPY has been drifting lower, with the pair moving towards the 61.8% Fibonacci retracement at ¥110.16.

The uptrend in play over the past month looks likely to persist, with this recent pullback providing us with a good buying opportunity. As such, further downside shouldn’t necessarily be something to worry about unless we break below ¥109.56. A bullish outlook remains in place unless that level is broken.

USD/JPY chart

USD/JPY chart


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.