EUR/USD, GBP/USD and USD/JPY continue to move higher
Risk appetite continues to lift key forex pairs, with the countertrend rally in USD/JPY showing no sign of slowing down.
EUR/USD edges back towards recent high
The recovery for EUR/USD goes on, lifting the price back towards the peak seen earlier in the week.
The price has yet to clear the 50-day SMA (simple moving average) at $1.1802, but intraday dips have been taken as buying opportunities, and with stochastics still rising it looks like the path of least resistance is higher. A reversal below $1.17 would be needed to signal that a broader downturn is at play, while additional gains from current levels targets $1.19.
GBP/USD continues to rise despite Brexit fears
GBP/USD has found the strength to rally despite signs of a hardening UK stance in Brexit negotiations.
The price is pushing back towards the top end of recent gains, with the price repeatedly falling back from $1.30 since mid-September. However, with signs of strong buying in recent sessions and still-rising stochastics the momentum remains with the buyers, bolstering the chances of a move back above the 50-day SMA ($1.3032).
USD/JPY breaches 50-day SMA
The USD/JPY pair finds itself in an interesting place, having continued to rally from the September lows.
Previous bounces that have reached the 50-day SMA (¥105.80) or exceeded it, have not lasted long. However for now the buyers remain in control, as rising momentum indicators and a new three-week high for the price shows. A reversal has yet to be seen, but with the downtrend still firmly in place there is still much to be done to avoid this bounce creating yet another lower high.
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