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EUR/USD edges down as GBP/USD and USD/JPY move higher

The euro has fallen back against the US dollar, with USD/JPY rebounding for the time being.

EUR/USD edges back below $1.23

After moving up for three days, EUR/USD has edged back down again, but it has still managed to create a new higher high in its ongoing rally.

For the moment this drop appears to be just a short-term decline – a more bearish view would come into play with a drop below $1.22, which would also result in a break below rising trendline support from early December.

GBP/USD holds above $1.35

GBP/USD gains since Monday’s drop have failed to recover the highs from that session, but so far the downside has been limited, with losses contained above $1.354.

Further gains continue to target $1.3711, while a drop below $1.347 would likely signal the beginning of a deeper retracement that targets the rising 50-day simple moving average (SMA) at $1.3335.

USD/JPY rebounds from lower low

After hitting a nine-month low on Tuesday the USD/JPY price has bounced, as may have been expected following the recent poor run in late December.

Previous rallies have run out of steam near the 50-day SMA (¥104.02) so this is an area to watch in the event of further near-term gains.

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