EUR/USD and GBP/USD in retreat as USD/JPY rallies
Dollar strength post-FOMC is bearing down on the euro and sterling, but has given the greenback a new lease of life against the yen.
EUR/USD suffers sharp fall
The Federal Reserve (Fed) meeting gave the dollar a lift and has driven EUR/USD to its lowest level since the second half of April.
The sellers do appear to have the upper hand, although the downward move now faces challenges at $1.194 and $1.188. Below this the April low at $1.17 comes into view. A recovery back above $1.19 might spell the beginning of at least a short-term bounce.
GBP/USD retracement potentially limited?
The losses have been somewhat more measured here, but GBP/USD has fallen out of the trading range of May and June, towards the 100-day simple moving average (SMA) at $1.1937.
This remains within the broader uptrend, however, with previous higher lows in the $1.37/$1.38 area yet to be challenged in any meaningful way. Dip buyers will be on watch for a recovery above $1.402 and the 50-day SMA that could spell another move higher.
USD/JPY rallies after FOMC meeting
Jerome Powell has finally given USD/JPY the boost it needed, as the pair rallied to a higher high on changed expectations regarding Fed policy.
The April peak at ¥110.96 is now back in sight, while the bounce from the June low at ¥109.16 remains in place and leaves the buyers firmly in charge.
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