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EUR/USD and GBP/USD start to recover, while USD/JPY continues wider uptrend

EUR/USD and GBP/USD manage to recover some of their recent losses, while USD/JPY pushes higher from trendline support.

Transcript

EUR/USD attempts to stabilize after recent losses

EUR/USD has been able to stabilize after a period of sharp declines, with the price moving back up towards the key $1.1925 resistance level yesterday.

That level will remain crucial today, with a push up through that point bringing about an inverse head and shoulders formation. Such a break could bring a wider retracement phase into play. As such, watch for whether the price breaks through $1.1925 as a gauge of the forthcoming price action over the near term.

GBP/USD easing back after sharp rebound

GBP/USD has similarly enjoyed a more positive period over the past 24 hours, with the declines seen in the wake of the Federal Open Market Committee (FOMC) easing somewhat. That rise highlights potential for another upward move before long, with the current pullback expected to represent a retracement before we push higher once more.

A rise through the $1.3944 level would bring greater confidence of such a move, with a good chance we post a wider retracement before long. Such a push would signal a potential push back towards the $1.40 to $1.4051 Fibonacci zone. Until that break occurs, there is still a risk of another move lower.

USD/JPY pushes higher after wider retracement

USD/JPY ended up posting a wider retracement into the region of trendline support yesterday, with the pair pushing higher in early trade since.

The ongoing uptrend seen over the course of the past two months signals a potential for further upside, with a bullish outlook in play unless we break through trendline and the ¥109.20 support.

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