Kickstart your trading day: A technical look at the EURUSD, USDJPY and GBPUSD

Technical Analysis

The Bank of Japan kept rates unchanged overnight. That led to a rebound higher in the USDJPY and for a retest of the high prices from yesterday at 148.453. The high price fell 4 pips short of that and has rotated back to the downside maintaining most the gains.

The EURUSD took out the low from yesterday but only by a fraction of a pip and in doing so retested the 38.2% retracement of the move up from the September 2022 low at 1.0610. That level remains a key barometer for buyers and sellers today and going forward. If the level holds, the corrective move off the July high in 2023 is just a “plain vanilla red variety”.

The GBPUSD remains under pressure but found support against yesterday’s low near 1.2229. The price has rebounded modestly with a swing area between 1.22608 and 1.22823 above. That level would need to be broken to give the buyers a shot (especially after the double bottom today). Absent that in the sellers remain in firm control.

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