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EUR/USD and GBP/USD under pressure as USD/JPY attempts to rally

EUR/USD and GBP/USD continue to fall, while the dollar has seen some strength against the yen.

EUR/USD fights to move higher

The EUR/USD losses stalled just below $1.12, and a move below this and through last Friday’s low at $1.117 would be a bearish development, reaffirming the current downtrend.

Alternatively, the price needs to rally through $1.126 and then challenge $1.135, where gains have stalled twice this month.

GBP/USD still under pressure

Not much sign of a bullish momentum appears for GBP/USD, as the price sticks close to $1.24.

A move through $1.245 might signal another attempt to break above $1.255, which would help to establish a higher high and provide a more bullish view. Alternatively, further declines below $1.24 open the way to $1.235 and then on to fresh lower lows.

USD/JPY returns to ¥107.50

USD/JPY has essentially gone nowhere since mid-June. However, if it can rediscover the upward momentum seen since Tuesday then a more bullish view might continue to develop.

Above ¥107.50, the price will reinforce the bullish view. Further declines from current levels bring ¥106.20 into 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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