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EUR/USD and GBP/USD edge down as USD/JPY surges

The rallies in EUR/USD and GBP/USD have stalled, while USD/JPY is holding steady after yesterday’s bounce.

EUR/USD drifts back from recent high

The EUR/USD’s ascent over the past month has been arrested of late, as it drops back from the high seen at the end of last week.

It continues to hold rising trendline support from the end of March, but as yet a break has yet to develop. Further gains target the $1.22 zone, which has acted as resistance for most of the year so far. For the moment a more bearish view awaits a drop below rising trendline support.

GBP/USD hangs on to gains

After rallying to a two-month high GBP/USD has dropped back, but having cleared the zone of resistance around $1.40 the bullish view continues to prevail.

Further gains head towards the late February high at $1.425. A drop back below $1.40 signals a near-term retracement, but it remains in a longer-term uptrend.

USD/JPY surge restores bullish view

Yesterday’s surge in USD/JPY saw it bounce from rising trendline support and also break above trendline resistance from the March peak. This puts the buyers back in charge and further gains above ¥109.80 reinforce the bullish view, opening the way to March highs at ¥111.00.

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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