EUR/USD, USD/JPY and GBP/USD Forecasts – US Dollar Continues to Test Other Currencies

EUR/USD Technical Analysis

The Euro has bounced slightly during the trading session on Monday, but we are sitting right at the 200-day EMA. The 200-day EMA, of course, is an indicator that a lot of people will be watching closely. So, if we were to break down below it, I think it opens up a move to much lower levels, maybe 1.15, possibly 1.14.

USD/JPY Technical Analysis

The US dollar has rallied a little bit against the Japanese Yen, but we are getting a little bit stretched here. What I would like to see is a little bit of a pullback in order to find value so that we can take advantage of any cheap dollars that we can find.

The 50-day EMA sits just above the 150-yen level, and it is an area that I think will continue to be important—a little bit of a floor, if you will. Above, we have the 160-yen level, an area that I think a lot of people will have to watch closely due to the fact that we had seen the Bank of Japan intervene in that general vicinity. That being said, this is a situation I think you’re looking to buy dips, taking advantage of the interest rate differential and any value you can find.

GBP/USD Technical Analysis

The British Pound has rallied a bit as well, but much like the Euro, it is giving back some of those gains pretty early in the day. The difference, of course, is that we are sitting below the 200-day EMA, and market participants might be looking for a move back down to the 1.3250 level.

If we break above the 200-day EMA, essentially the 1.34 level, then we could go looking at the 1.35 level, but we’ll just have to wait to see whether or not we can get that momentum.

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