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EUR/USD and GBP/USD hold support as USD/JPY breaks higher

The euro and sterling are under pressure against the dollar, while the greenback rallies against the yen.

EUR/USD holds support and targets recent highs

EUR/USD has bounced from $1.078 again, as it did last week. It will be interesting to see if the pair can move above $1.088; rallies towards this level on 5 and 8 May became selling opportunities so buyers need to clear this to develop a longer-term move to the upside.

A drop below $1.078 opens the path to a bigger decline, although the late-April low at $1.073 might provide some hope of another holding action on the part of the bulls.

GBP/USD fights to hold $1.23

Here, too, GBP/USD is fighting to hold support for the second time in a week. In this case, $1.23 is the level to watch while bounces towards $1.24 would bring trendline resistance into play.

Near-term support levels to watch are $1.225 and $1.219, as the buyers attempt to stem any further downside.

USD/JPY builds on breakout

USD/JPY has staged a breakout from the bullish wedge in place since the beginning of April. This brings ¥111.00 into view, the highs from late March.

The more bullish view remains in place unless the price reverses back below ¥106.50.

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