EUR/USD and GBP/USD stall as USD/JPY continues to head lower
Rallies in EUR/USD and GBP/USD have run out of steam, but the rapid downward move in USD/JPY shows no sign of stopping.
EUR/USD looks to reverse Wednesday weakness
EUR/USD edged back from $1.19 over the past two days, with a downward move in yesterday’s session.
A reversal back above $1.19 would be the starting point of a more bullish move that could see the $1.20 level tested. Alternatively, we look for a modest retracement towards $1.175, with a more bearish view taking us back towards $1.16 and the lower bound of the range that has prevailed for the past four months.
GBP/USD stalls below $1.33 again
GBP/USD’s push higher ran out of steam at $1.33 yesterday, as it did last week, providing an indication of further selling pressure from here.
A deeper move below $1.315 would raise the risk of a near-term double top, with a drop below $1.31 providing confirmation of this. A rally through $1.33 provides a new bullish catalyst and opens the path to $1.347 and the September high.
USD/JPY downtrend firmly back in play
Monday’s brief bounce is a distant memory, as USD/JPY heads back towards the month low at ¥103.20.
The longer term downtrend has reasserted itself this week with the reversal below the 50-day simple moving average (SMA) of ¥105.03 that created another lower high.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.8 pips on EUR/USD
- Analyze market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on the most popular forex markets