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EUR/USD and GBP/USD recover, while USD/JPY looks to break higher

EUR/USD and GBP/USD are managing to make some gains, while USD/JPY is still hovering below recent resistance.

EUR/USD continues bullish turn

EUR/USD has managed to move above the 50-hour simple moving average (SMA) of $1.074 for the first time since 10 March.

The price has managed to create higher highs and lows on the hourly time frame, and has cleared $1.08, the highs of Friday and Monday. A move back below $1.065 invalidates the more bullish view, but the recent sharp drop revives the EUR/USD downtrend and suggests that a bigger rebound towards $1.10 would be a possible selling opportunity.

GBP/USD rebound looking unsteady

GBP/USD has moved off the lows of the past week, but it’s running out of momentum as it nears $1.17.

A turn lower from here heads towards $1.142, while a more bullish view in the short term targets $1.19. This development would reinforce the view that the pair has bottomed out for the time being, and would target $1.2366. A reversal below $1.14 signals that more losses may be near at hand.

USD/JPY looks for a breakout

USD/JPY continues to climb, having built a series of higher lows over the past three sessions.

However, it has yet to really clear the area around ¥111.50. If it can do this then ¥112.30 comes into play, and then from here ¥113.64. A reversal below ¥109.50 would be regarded as a bearish development.

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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