EUR/USD and GBP/USD look to further upside, as USD/JPY bounce runs out of steam
Gains continue to dominate in EUR/USD and GBP/USD, but the breakout earlier in the week for USD/JPY appears to be fizzling out.
EUR/USD climbs to new high
EUR/USD has moved decisively higher over the past two sessions, clearing $1.20 and then $1.21 after weeks of indecision.
The path of least resistance clearly lies to the upside, but with the price now so extended to the upside bulls need to be careful. A drop back below $1.20 could spark a bigger pullback towards the 50-day simple moving average (SMA) of $1.1812.
GBP/USD recovers from Wednesday weakness
Dips for the GBP/USD pair do not last very long, as we saw yesterday with the drop below $1.33 which was swiftly recovered.
The November upward trend stays in place until we see a move back below $1.33, but as has been shown over the past week or more there is plenty of buying pressure as we approach this level. Bears will need plenty of strength to effect a real change in the current outlook for this pair.
USD/JPY continues breakout
USD/JPY’s rally through trendline resistance from earlier in the week continues, although there is little real conviction behind it.
Yesterday’s bounce towards ¥104.80 was hit by selling just as the last one was on November 24, putting further upside into question. A reversal below ¥104.00 would break trendline support from the November low and also put the price back below trendline resistance from the November peak at ¥105.50.
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