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EUR/USD and USD/JPY fall as GBP/USD moves sideways

EUR/USD’s sharp bounce has firmly ended now, and we are seeing further downside for this pair, as well as for USD/JPY.

EUR/USD downtrend intensifies

The direction of travel for EUR/USD over the past three sessions has been downward, with the price forming lower highs and lower lows.

Short-term trendline resistance may come into play around $1.098, while further declines below $1.09 head towards $1.075 and then $1.064. Above $1.098 the price targets $1.105, the previous lower high, and then on to $1.115 and the highs from 30 March.

GBP/USD drifts sideways

GBP/USD has moved sideways over the past week in a tightening range, so far unaffected by the modest renewal in USD strength.

Losses below $1.23 have been prevented, with buyers stepping in to defend this area, while any rally above $1.24 of late has proven short-lived. Below $1.23, risks a revival of the downward move towards $1.16, while above $1.24 the price heads towards $1.2635 and then $1.277.

USD/JPY under pressure

The move lower for USD/JPY looks to be resuming, as the price manages only a slight bounce from the lows of yesterday.

A drop below ¥107.00 would confirm the more bearish view and suggest a deeper decline towards ¥105.00. A more bullish view requires a substantial revival, targeting the ¥108.60 highs from earlier in the week.

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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