Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD and GBP/USD pause their ascents while USD/JPY continues to rise

Outlook on EUR/USD, GBP/USD and USD/JPY as the greenback appreciates on news that the US mid-size banking sector will soon be more tightly regulated.

Video poster image

​​​EUR/USD’s advance stalls below current March high at $1.0929

EUR/USD’s rise from last week’s $1.0714 low faltered slightly below the current March high at $1.0929 as final German consumer price index (CPI) data slightly overshot expectations while Spanish inflation came in much lower than anticipated.

​EUR/USD is likely to find support along the two-week uptrend line at $1.0855, ahead of the $1.0804 to $1.0801 mid-February and Monday’s highs. While the latter level holds, overall upside pressure should be maintained with a rise towards the $1.1033 February peak remaining on the cards.

​For now, resistance at last and this week’s highs at $1.0926 to $1.0929 caps, though. ​Minor support below Monday’s $1.0801 high can be seen at the mid-March high at $1.076, ahead of the 55-day simple moving average (SMA) at $1.0742.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD runs out of steam below key resistance at $1.2446 to $1.2448

GBP/USD has nearly reached its December and January highs at $1.2446 to $1.2448 as the UK narrowly avoids a recession with its final quarter four (Q4) gross domestic product (GDP) coming in stronger than expected at 0.1%.

​A minor retracement back towards last week’s high at $1.2343 and perhaps the one-month steep uptrend line at $1.2325 may ensue while the $1.2446 to $1.2448 resistance zone caps.

​Provide that no bearish reversal takes the currency pair to below Thursday’s low at $1.2294 on a daily chart closing basis, the recent uptrend remains intact. ​A rise above the December and January highs at $1.2446 to $1.2448 could lead to the May 2022 peak at $1.2667 being back on the map.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY recovery slows down but still remains in play

USD/JPY’s recovery from last week’s ¥129.65 low amid an appreciating US dollar as the US government asked the country’s financial regulator to tighten up recently relaxed legislation in regards to mid-sized banks and undertake more rigorous stress testing, has taken it to above the 55-day SMA at ¥132.53.

​The next potential upside target can be spotted at the 24 February low at ¥134.06 with only a rise above the next higher ¥135.11 mid-March high meaning that the 2023 uptrend has indeed resumed.

​Unless such an advance occurs, the odds favour another down leg being made which could take the cross to below its 10 February and March lows at ¥129.81 to ¥129.65. ​Support below the 55-day SMA at ¥132.54 can be found at the 27 March high at ¥131.77.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.