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EUR/USD and GBP/USD mixed as USD/JPY moves into narrow range

Rallies in EUR/USD and GBP/USD have stalled for now, while USD/JPY has found itself stuck in a tight range as the buyers and sellers fight to establish the next direction.

EUR/USD steadies around $1.21

The EUR/USD price fell back from last week’s high, but only slightly, leaving the bullish move of the past few weeks firmly in place, but perhaps looking a touch overextended ahead of the European Central Bank (ECB) meeting this week.

Rising trendline support from the November low would come into play around $1.20, and then below this $1.1815 is also possible support.

GBP/USD rocked by Brexit news

Headlines regarding negotiations saw the GBP/USD pair move around quite a bit yesterday, with a dip towards $1.32 being met by buying.

While it finished well off the lows it has begun to seep lower in early trading, suggesting perhaps some more weakness in the short-term, possibly towards the rising 50-day simple moving average (SMA) at $1.3128. A recovery of $1.34 would begin to point to a new leg higher that could see the price challenge $1.35 again.

USD/JPY holds around ¥103.70

The downward move for USD/JPY has been stalled above ¥103.50 for two weeks now, with a range emerging between ¥103.70 and ¥104.50.

So far there is little sign of a new direction emerging, so we wait for a break below to re-establish the downtrend, or above to point towards a resumption of the bullish move seen earlier in November.

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