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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.

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