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FX levels to watch: EUR/USD, GBP/USD and USD/JPY

USD/JPY has held on to the bounce from earlier in the week, but EUR/USD and GBP/USD are losing ground once again.

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EUR/USD on the back foot

EUR/USD has dropped back rapidly over the week, and last week’s low at $1.1432 is now likely to be tested.

A close below this opens the way to $1.13, the August low. A close above $1.16 is needed to suggest that a more bullish view prevails.

EUR/USD chart

GBP/USD tests key moving average

While the price is holding above the 50-day simple moving average (SMA) at $1.3005, the overall picture for GBP/USD seems bearish given the declines seen over the past week.

It would require a close above $1.32 to reverse this view. Further declines target $1.2926, and then down to $1.2773.

GBP/USD chart

USD/JPY buyers still in control

USD/JPY’s bounce off the lows from the beginning of the week remains intact, and a fresh drop yesterday brought out the buyers.

Above ¥112.75 the price targets ¥113.64 and then ¥114.49. A close below ¥111.62 is needed to negate rising trendline support and suggest a more bearish view is developing.

USD/JPY chart

This information has been prepared by IG, a trading name of IG Markets 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.

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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.