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Quiet day sees EUR/USD, GBP/USD and USD/JPY looking for direction

EUR/USD has dropped back from its weekly high, while GBP/USD is still in rally mode and USD/JPY is holding Thursday’s lows.

EUR/USD drops back from $1.13

Gains have proven impossible to sustain for EUR/USD, with the price twice knocked back from $1.13.

If it manages to hold $1.126, then another push higher may result, but a daily close above $1.13 is still needed to revive the bullish view. On the other hand, bears will need to see the price below $1.119 and the lows of the past two weeks to believe that a bigger move lower is underway.

GBP/USD renews its move higher

For the GBP/USD, an uptrend looks more solid, with the price having climbed steadily in recent sessions.

However, it has yet to breach $1.255, although that seems likely not that the pullback from the early-Thursday peak appears to have run its course. A reversal below $1.235 would negate this more bullish view.

USD/JPY hovers above support

For the USD/JPY, the uptrend from the 23 June low is intact, with the price continuing to hold above ¥107.30.

Further gains target ¥108.10 and the high from earlier in the week, while a more bearish view requires the price to move below ¥107.00 and then push on to target ¥106.20.

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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