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FX levels to watch – EUR/USD, GBP/USD, USD/JPY

A weakening dollar has led to a bounce in EUR/USD and GBP/USD, and has put a dent in USD/JPY’s rally.

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EUR/USD clambers above $1.17

EUR/USD has recovered from the lows of last week, and is attempting to move further above $1.17.

A close above $1.1744 would be viewed as more bullish, targeting $1.18 and then $1.1852. A further decline today would see the $1.15 support zone tested once again.

GBP/USD bounces from recent lows

Sterling bulls wrenched back control on Friday, but GBP/USD still recorded a new lower low last week.

A close above $1.3306 is needed to indicate that the post-May downtrend has run its course. A lower high in the next few days would continue to be regarded as a selling opportunity, targeting $1.30 and lower.

USD/JPY drops back to support

USD/JPY has retraced towards rising trendline support from the March lows.

A bounce from here would target the ¥113.00 level, but it is disappointing to see the price back below the post-2015 downtrend line. A bounce back above ¥111.60 would negate this bearish view. Further declines are likely to find support around ¥110.00.

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This information has been prepared by IG, a trading name of IG Markets Limited 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.