Risk appetite revival lifts EUR/USD, GBP/USD and USD/JPY
Risk appetite has revived, leading to rallies for key FX pairs as the recent jitters about the global monetary policy outlook begin to fade.
EUR/USD rebounds above 50-day SMA
EUR/USD is headed higher once again, having cleared the 50-day simple moving average (SMA) at $1.2156 and now looks set to target the January high at $1.235.
The bullish view has recovered after the uncertainty that persisted from mid-January until this week, but a higher low has been formed and the price is on an upward path once again. Sellers will need to see a drop back below $1.21 and then on to $1.194.
GBP/USD rally keeps on going
There seems to be no stopping the GBP/USD pair, but the yawning gap between the price and the 50-day SMA ($1.37) may become an issue at some point.
A reversal below $1.40 would provide some evidence of a near-term pullback, but for now that has yet to materialise.
USD/JPY surges back to recent highs
The recovery here is complete, and now USD/JPY can look towards a continued bounce that takes it through last week’s highs and towards the August highs at ¥107.
The bullish view is firmly back in place, and sellers have now been shut out once again, having failed to hold the price below ¥105.
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