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EUR/USD and GBP/USD keep climbing as USD/JPY consolidates

The rallies for EUR/USD and GBP/USD keep going, while the dollar is consolidating against the yen after its recent strong gains.

EUR/USD rebounds from one-week low

EUR/USD has recovered from the dip to $1.17 yesterday, and has moved back above the 50-hour and 100-hour simple moving average (SMA), both at $1.1785.

Further gains target the peak from last Friday above $1.19, while a reversal below $1.17 is needed to signal some more near-term weakness is at hand.

GBP/USD resumes its march higher

A similar picture prevails for GBP/USD, which has moved higher after testing support around $1.3015.

This higher low provided another good entry point for fresh longs, and now the price moves on to challenge $1.311 and then $1.317.

USD/JPY consolidates after bounce

USD/JPY surged from Friday into Monday, reaching ¥106.50 - but gains have stalled for now.

Nevertheless, barring a reversal back below ¥105.60, where the price bounced yesterday and had faltered towards the end of July, the outlook seems more congenial for the bulls. Bullish stochastic and moving average convergence/divergence (MACD) crossovers may well point the way to a resumption of the upward move.

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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