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EUR/USD rebound falters, while GBP/USD drops back and USD/JPY holds on to gains

Dollar strength has weighed on EUR/USD and GBP/USD, while USD/JPY continues to consolidate after the surge earlier in the week.

EUR/USD heads lower once again

The EUR/USD rebound has run out of steam, faltering at the 50-day simple moving average (SMA) at $1.2152 on Tuesday.

This lower high does hand the initiative back to the sellers, and brings a move back towards the $1.194 level that was nearly tested last week. Further declines would then bring $1.188 and then the 200-day SMA at $1.1747 into play. Bulls need to get the price back above $1.215 to reverse this view.

GBP/USD suffers a reverse

GBP/USD has edged down for three sessions, but this has only led to the loss of the gains made on Monday.

Further declines could see $1.3711 tested once again, with a drop below $1.378 amplifying the short-term bearish view. A rebound above $1.39 would suggest a new move higher is underway.

USD/JPY back below ¥106

The surge on Tuesday carried USD/JPY to its highest level since early October.

While it then dropped back on Wednesday, the bounce is firmly intact, with higher highs and higher lows created over the past month. Further gains will come with a breakout above ¥106.11, with the bearish view banished unless we see a drop back below ¥105.00 at the minimum.

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