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

    GBP USD analysis

    Source – (IG.com) – EUR/USD is enjoying a good week, but it looks like the small bounce in USD/JPY may have run its course.0:00/12:32 

    Chris Beauchamp | Market Analyst, London | Thursday 10 January 2019 10:14

    EUR/USD steady after sharp bounce

    The sharp rally yesterday has seen the EUR/USD pair move solidly above $1.15. Further gains target the 200-day simple moving average (SMA) at $1.1639, just above the mid-October peak at $1.162.

    If this current move higher marks the end of the $1.13-$1.15 trading range, then we look to the $1.1852 highs from the middle of 2018 as the next longer-term target. Having seen a series of higher lows since the beginning of the month, new higher lows above $1.145 would mark possible buying opportunities.

    EUR/USD chart

    GBP/USD staled at $1.28

    The GBP/USD pair continues to edge above the 50-day SMA ($1.2774).

    However, gains above $1.28 have proven too much to sustain, raising the risk of a pullback. A close above $1.28 opens the way to $1.284 and $1.2934, with the 100-day SMA at $1.2896 also a possible area of resistance. Yesterday’s weakness found support at $1.27, and if this is broken, $1.2635 comes into view.

    GBP/USD chart

    USD/JPY turning bearish after decline

    USD/JPY has rolled over and eaten into the gains made earlier in the week.

    Having faltered at ¥109.00, we now need to watch to see if the current move higher off the ¥107.80 level fails to recover ¥109.00. If it does bounce and then turn lower, we have a new possible selling opportunity. A recovery back above ¥109.00 would revive a more bullish view.

    USD/JPY chart

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