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EUR/USD and GBP/USD move up as USD/JPY holds firm

After some weakness yesterday EUR/USD and GBP/USD are on the up, as USD/JPY continues to consolidate after recent volatility.

EUR/USD shrugs off recent bearishness

EUR/USD recovered from what seemed like a possible turn lower yesterday, clinging on around $1.217.

It has now begun to push back towards $1.22, recovering from its latest dip. A close above $1.22 and a move towards $1.225 puts the buyers firmly back in charge. Sellers will want to see a reversal below $1.216 that then moves on below $1.21.

GBP/USD edging higher again

With GBP/USD the recent weakness appears to be resolving into a move higher, as the pair heads back to $1.22.

This cancels out any bearish view for the time being and points towards a renewed move to $1.424, assuming the price can clear the area just below $1.42 that has marked the limit of gains so far this month.

USD/JPY holds its ground for now

While the USD/JPY price bounced from the lows of Monday, it has struggled around ¥109.50.

However, given that the sell-off from last week’s highs has been stemmed for now, then there may yet be enough bullish momentum to push the price back above ¥109.60 and onwards towards ¥110.00 A drop below ¥109.20 negates this view.

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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