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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.

USD/JPY is trading at 4-year highs while EUR/USD and GBP/USD begin the new year on the back foot

While EUR/USD and GBP/USD are struggling, USD/JPY has begun the new year with a push to four-year highs.

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EUR/USD

EUR/USD is rapidly slipping towards $1.1274, the 29 December low, below which the November-to-December channel support line can be spotted at $1.1256 and may hold.

If not, a good band of support can be found between the 7 and 20 December lows at $1.1237/22. Further down sits the November low at $1.1186.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD

GBP/USD formed a minor top at $1.355 in late December and is seen heading back down towards the tentative support line at $1.3453. Below it lies the $1.3412/02 support zone, made up of the late September low and the 38.2% Fibonacci retracement of the December advance.

Further down more significant support can be made out between the mid-November low and the late November-to-mid-December highs as well as the 50% retracement at $1.3375/53.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY

USD/JPY continues its December advance and has now risen above the November peak at ¥115.52 to a 4-year high and thus likely has the August 2015 low at ¥116.21 in its sights.

Above this level sits strong resistance between the October 2015 low and the December 2016 and January 2017 highs at ¥118.06/66. Upside pressure should be maintained while the cross remains above this year’s current low at ¥114.95.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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