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EUR/USD, GBP/USD rise as USD/JPY edges lower

US dollar weakness has continued, allowing EUR/USD and GBP/USD to rally as USD/JPY weakens from its recent high.

EUR/USD recovery continues

EUR/USD's small bounce from the 200-day SMA ($1.1827) goes on, although it has only recovered a small part of the losses suffered recently.

Further gains target $1.20, once $1.1940 has been cleared, and from there the price heads on towards $1.22. The breakout from trend line resistance is now complete, suggesting a revival of the longer-term trend up, so a reversal below $1.182 would negate the bullish view.

GBP/USD pushes to one-week high

GBP/USD's rebound is in place, with the pullback having not even reached the 50-day SMA ($1.3780). Some resistance may lie around $1.40, but above this $1.42 comes into view.

Having reversed the string of losses from late February (although still to recover all the lost ground) the pair seems to be back on an upward course, with no sign of any bearish reversal as yet.

USD/JPY continues to retreat

The highs continue to be the target for selling here, as the USD/JPY price heads back to possible trendline support from the late February low around ¥105.

A drop below ¥108 would further confirm the short-term bearish view of a pullback, although the longer-term rally from the January low is firmly intact. Buyers need to reverse the move and recover ¥109, but after such a big rally a period of digestion seems likely.

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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