EUR/USD steady ahead of ECB, while GBP/USD holds up well and USD/JPY stabilises
After the Fed decision last night we have seen the dollar weaken, but all eyes are now on the ECB meeting.
EUR/USD above $1.10 ahead of ECB meeting
The pair EUR/USD surged to a one-week high last night, but pre-ECB nerves have held back further progress.
However the overall uptrend remains intact, and recent price action has supported the bullish view, with dips still being bought, even as momentum has slowed.
With the price remaining above the 50-day simple moving average (SMA) and the 100-day SMA the near-term bullish view prevails. Some volatility is to be expected around the European Central Bank (ECB) meeting today, but it would need a move below $1.09 to suggest that a reversal is at play.
GBP/USD back at 2023 highs
Dollar weakness has driven fresh gains in the pair GBP/USD, reviving the uptrend.
As with EUR/USD, there has been only short-term weakness in recent weeks, with dips being met with buying pressure and supporting near-term upside.
A more bearish view would require a break of these intraday higher lows seen since mid-March, and a move back below $1.23.
USD/JPY edges up after sharp losses
After two days of losses in the pair USD/JPY the price has stabilised, with the recent run of higher lows still in place.
A move below ¥133.00 would put a dent in this view and flag a possible move back towards ¥130.00 or lower.
A revival back above ¥135.00 would support the bullish view and indicate a potential move back to the 200-day SMA and even higher over time.
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