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EUR/USD and GBP/USD hold their ground while USD/JPY under pressure

A weaker dollar has knocked USD/JPY, but given EUR/USD and GBP/USD some breathing space.

EUR/USD holds firm after losses

Having clocked up a lower low this week, the EUR/USD price rebounded somewhat yesterday. However, gains stalled at $1.094 and, as a result, a fresh downside move may develop, targeting $1.088 and lower.

The broader picture remains firmly bearish, with a rebound towards $1.100 likely to throw up another selling opportunity.

GBP/USD steadies above 50-day SMA

While the GBP/USD down move from last week is intact, it has lost momentum of late. The price dropped below the 50-day simple moving average (SMA) yesterday, but dollar weakness saw it rebound.

If the price can hold above $1.225 then a higher low may be in place following on from the September low below $1.200. A push higher targets $1.255, the peak from mid-September.

USD/JPY knocked back by US data

The rally in USD/JPY suffered a sharp reversal yesterday, with the price moving back below ¥108.00.

Further declines head towards ¥106.90 and last week’s lows, and below this the August lows at ¥105.00 come into play. A rebound above ¥108.20 is needed to revive the bullish impression.

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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