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Stronger dollar lifts USD/JPY, but hits EUR/USD and GBP/USD

The euro is in full retreat against the US dollar, which itself is rallying against the yen as risk appetite revives.

EUR/USD in full retreat

Selling the rallies has been the way to go for EUR/USD, with bounces over the past few days meeting fresh selling pressure. The brief move higher overnight, back above $1.105, seems to have run its course, and hourly stochastics and moving average convergence/divergence (MACD) now seem poised to roll over.

A move back above $1.11 is needed to revive a more bullish thesis, while a resumption of the longer-term downtrend targets the late-September low at $1.09.

GBP/USD attempts to hold above $1.28

The decline over the past two weeks has been less dramatic for GBP/USD, and with the price once again attempting to hold above $1.28 we may yet see a recovery.

However, selling intraday rallies has been the dominant theme since the beginning of the month – Thursday’s bounce towards $1.287 found sellers, so this needs to change, with the price moving back above the 50-hour simple moving average (SMA) of $1.2844 and holding above it, if bulls are to regain the upper hand.

USD/JPY stages push above ¥109

Is USD/JPY finally breaking out above ¥109.00? It looks that way, as the price bounced from ¥108.60 yesterday and continued its gains this morning.

Further gains head towards ¥109.55, with intraday dips still being possible buying opportunities. Even a dip towards ¥108.50 is still likely to encounter trendline support from the August low.

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.

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