EUR/USD, GBP/USD, USD/JPY – Dollar Softens Slightly on Thursday

The US dollar continues to see a lot of widespread confusion, but to start the Thursday session, the USD is a touch soft.

EUR/USD: The 1.16 Level Begins a Significant Support Zone

The Euro (EUR/USD) has dropped a bit during the trading session on Thursday to test the 200-day EMA and perhaps more importantly the 1.16 level. The 1.16 level is an area that begins a significant support zone down to the 1.15 level. Anything below 1.15 more likely than not will open up the possibility of a complete wipeout, but as things stand right now, we’re just testing this area, waiting for the next headline to drive markets in one direction or another.

EUR/USD daily chart – Price tests the 200-day EMA and the critical 1.16 support level. Source: TradingView.

A Rally From Here Targets the 50-Day EMA at 1.1750

If we do rally from here, the 50-day EMA will certainly be a bit of a barrier, currently sitting at the 1.1750 level.

GBP/USD: The 200-Day EMA Attracts Attention as 1.3250 Holds

The British Pound (GBP/USD) has fallen a bit during the trading session but is turning around to show signs of life, and it looks like we are trying to figure out where to go next as the 200-day EMA attracts a lot of attention. The 1.3250 level is a significant floor, and if we were to break down below there, it’s likely we could go down to the 1.31 level.

GBP/USD daily chart – The pair tests the 200-day EMA with 1.3250 support and 1.35 resistance in focus. Source: TradingView.

1.35 Remains the Barrier With Significant Market Memory

A rally at this point could open up the possibility of the 1.35 level being targeted, as that is the barrier that a lot of traders have been watching for a while and it should continue to carry significant market memory.

USD/JPY: Pressing Into the Massive 158–160 Resistance Zone

The US Dollar against the Japanese Yen (USD/JPY) initially fell during the trading session on Thursday but then turned around to show signs of life just below the 158-yen level. The 158-yen level kicks off a massive resistance zone that extends to at least 160-yen. The fact that we continue to press the issue here is very interesting, because if we can break above 160-yen, it’s possible we’ll end up breaking resistance that goes all the way back to 1990.

USD/JPY daily chart – Price presses into the massive 158–160 resistance zone with historic implications. Source: TradingView.

Below 156, the 50-Day EMA and 154 Become Downside Targets

If we break down from here, the 156-yen level gets targeted for support followed by the 50-day EMA. The 50-day EMA breaking down could open up a move to the 154-yen level. All things being equal, this is a market that continues to be very noisy and choppy, but the preference is to buy dips.