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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. 71% 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.

FX levels to watch – EUR/USD, USD/JPY

EUR/USD has begun showing signs of weakness, while USD/JPY looks set for further upside.

EUR/USD
Source: Bloomberg

EUR/USD recovery takes a hit

EUR/USD has been weakening overnight with the pair falling below the crucial $1.1829 level, following a break below trendline support.

This points towards a heightened chance of further downside for the pair, with the price seemingly respecting the previous resistance level of $1.1862. A break above $1.1880 would negate this short-term bearish view.  

USD/JPY looks to continue recent gains

USD/JPY pulled back into the 76.4% retracement overnight, with the pair subsequently turning higher once more.

The ability to remain above ¥113.20 will be key to maintaining the recent ascent, and until that happens, a bullish view is in place. The ability to break through ¥113.75 will provide a bullish wider view, yet for now, short-term gains seem likely. 

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