EUR/USD and GBP/USD move up while USD/JPY remains stuck below 100-day SMA

The euro and sterling have moved up against the dollar, with the pound boosted by wage data this morning. USD/JPY is holding steady just below the 100-day SMA.

EUR/USD returns to the 200-day SMA

The scale of the decline in EUR/USD is apparent following todays price action, which has carried the pair back to the 200-day simple moving average (SMA) for the first time since June 2021.

From the September low, the price has rebounded almost 10%, moving back above parity and successfully moving above the $1.036 area that marked support in May and then a lower high in August.

Further gains from here target the $1.0615 area, last seen in June, while a reversal below $1.03 might suggest that a period of consolidation is likely, following the surge of September – November.

GBP/USD holds above $1.18

For GBP/USD the pound has pushed back above $1.18, reversing Mondays weakness, as data shows further strength in UK wages.

After a mixed session yesterday, which nonetheless saw the pair hold on to most of its gains from the end of last week, the price has moved back above $1.18. Additional gains now target $1.208, and the 200-day SMA at $1.225.

Some consolidation around current levels, or a drop back towards $1.14, might not be surprising given the amount of data on the UK this week, along with the fiscal statement. A move back below $1.14 and/or the 50-day SMA would likely signal that the downtrend has been revived.

USD/JPY hovers below the 100-day SMA

After a small recovery yesterday for USD/JPY, the price has edged lower, remaining below the 100-day SMA.

Unlike EUR/USD and GBP/USD, where the downtrends have seen an impressive bounce, the uptrend here is still intact. The latest pullback has seen the price drop from ¥150.00 to ¥140.00, with additional targets at ¥135.00 in the event of further downside.

A recovery above the 100-day MA might signal that a higher low has been created, and might point towards additional gains towards ¥150.00.