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EUR/USD, GBP/USD and USD/JPY all move higher

In the wake of the FOMC decision we have seen gains for EUR/USD, GBP/USD and USD/JPY, as risk appetite revives.

EUR/USD rally continues apace

EUR/USD showing a straight-line move with no sign of slowing, and is on course to test the area just below $1.22 again, as it did in January and February. From there further gains head towards $1.235.

Rising trendline support from the March low has supported the price over the past month, with no sign as yet of a drop below this. A move below $1.2085 could signal the start of at least a short-term retracement.

GBP/USD targets $1.40 again

The price of GBP/USD continues to edge back to the $1.40 area that marks the limit of its gains for March and April. This is a crucial zone that will need to be cleared decisively to open the way to $1.42.

Short-term rising support from the early April low has, like with EUR/USD, prevented any significant downside, and sellers would need to see a drop below $1.3875 to indicate a new move down was at hand.

USD/JPY recovers after Wednesday losses

While USD/JPY fell back from its high in yesterday’s session, it has begun to recover overnight, targeting ¥109 once again and pointing towards further gains after the higher low of last week.

The bullish view remains in place unless we see a drop below ¥108 at the least.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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