Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD and USD/JPY edging higher

All eyes will be on USD/JPY, which has moved up for a second successive day. EUR/USD and GBP/USD are quieter, but have so far avoided further losses.

EUR/USD consolidates near $1.21

The EUR/USD pair’s ascent was given new life on Friday with a push towards $1.21, and while it has edged back over the past couple of days the overall bounce remains intact.

The next target is $1.22, and for the time being the price continues to hold at a sharply ascending support trendline. If this is broken a drop back towards $1.20 is possible.

GBP/USD renews upward move

The previous two days have seen a recovery of GBP/USD back above the 50-day simple moving average (SMA), reversing the growing bearish view of early last week.

This puts a move back to $1.40 in view, while above $1.405 the February peak looms at $1.425. The attempt by sellers to push the price below $1.38 last week failed, and leaves the bullish view in the ascendant for the time being.

USD/JPY begins tentative rebound

A bullish crossover in stochastics and a reversal of the lower highs of the past month may well point towards a renewed move higher, reviving the uptrend of the past few months.

This guardedly bullish outlook is maintained unless the price of USD/JPY reverses back below ¥107.50.

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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