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EUR/USD and GBP/USD weaken as USD/JPY moves higher

Some weakness continues to hit EUR/USD and GBP/USD, but USD/JPY is still moving higher.

Transcript

EUR/USD falls below $1.22

EUR/USD’s drop back below $1.22 in early trading has put a dent in the bounce from yesterday, and continues to reinforce the view that the pair is rolling over from the highs of the week around $1.225.

It remains to be seen how much further this has to run, or whether the price can continue to hold above $1.215 as it has done over the past two weeks.

GBP/USD continues to drop back

GBP/USD gains have stalled over the past two weeks, struggling to gain much traction above $1.42.

The failure of the bounce from yesterday’s low to make further progress above $1.418 suggests a new move lower is at hand, and a break of short-term trendline support will reinforce this bearish view.

USD/JPY heads higher

The USD/JPY price dropped back to ¥109.40 earlier in the week but has begun to recover, putting ¥110.00 in view once again.

This renewed bullish view targets the late-May spike at ¥110.20, and then on to ¥110.96.

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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