

USD/JPY has recovered in line with equity markets, but there is little in the way of optimism across most FX pairs.

Source: Bloomberg

EUR/USD still unable to clear $1.14

Yet again a push towards $1.14 for EUR/USD was met by selling, and while for now the downside has been stemmed around $1.135, the bearish view remains intact. Another push towards $1.13 seems likely.

One hope for the bulls is the ongoing rise in stochastics, with might suggest a weakening of bearish momentum, but it will require a close above the 50-day simple moving average (SMA) at $1.1418 to produce a more bullish view.

GBP/USD confined in a tight range

While GBP/USD has recovered from the lows of the week, it has yet to break the $1.28 area that has been such significant resistance this week.

Continued failure to break higher will lend strength to the generally bearish case, although they have their own task to breach $1.27.

USD/JPY rallies, but what now?

Like equity indices, USD/JPY rebounded from the lows, but the overall negative impression persists.

Trendline resistance from the Monday highs may well continue to cap gains, and if the pair does turn lower then we see a further move towards ¥112.24. A more bullish view would emerge with a move back above ¥113.20.

