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

The dollar is starting off the year in a bearish fashion, with gains for EUR/USD and GBP/USD coming, amid weakness for USD/JPY.

EUR/USD continues to climb

EUR/USD has been pushing higher since breaking through the crucial $1.1961 resistance level on Friday.

With the pair having little in the way of resistance until the $1.2070 level, there is a strong chance we will see this uptrend continue apace for the short term. Looking at the hourly chart, the ability to remain above $1.1992 will be key to this uptrend continuing. Keep an eye out for the response at $1.2070, should the pair reach it.

GBP/USD breaking through notable resistance level

GBP/USD has been breaking higher, in a similar manner as EUR/USD, with sharp gains pushing the price above the crucial $1.3550 resistance level this morning.

With the next major resistance level coming at $1.3659, there is a strong chance we could be set for a period of further gains should the price manage to break free of the current $1.3549 resistance level. A break below $1.3495 would be required to negate this current bullish bias.

USD/JPY breaking lower, setting up potential double top

USD/JPY is selling off once more this morning, following the pair’s failure to break above ¥113.75 in late December.

The ability to break below ¥112.03 will be a key determinant of bias for the pair, with a move below that level completing a bearish double top formation. As long as the price does not move back above ¥112.79, then a bearish outlook is in play, with the reaction to ¥112.03 level crucial to determining how long we will sell-off for.

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