gbp usd under pressure as yen weakens and key resistance levels tested

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The GBP/USD currency pair has recently experienced a decline and is currently trading at around $1.3070. This drop brings it close to a critical support zone defined by the 55-day simple moving average (SMA) and the September low, which ranges from $1.3060 to $1.3002. A breach below these levels could signal a shift in the medium-term trend, potentially bringing the 200-day SMA at $1.2779 back into focus.

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  • Support levels are identified between the early September high at ¥147.21
  • The late September high at ¥146.49
  • Friday's low at ¥145.93

These levels provide a framework for potential price movements in the near term.

The interplay between GBP/USD and EUR/JPY

In the EUR/JPY currency pair, recent trading activity has encountered significant resistance. The interplay between the euro and the yen is sensitive to shifts in monetary policy, and the current resistance levels are critical for determining the pair's trajectory.

From a technical analysis perspective, the GBP/USD pair's proximity to key support levels suggests caution. A fall through the support zone could trigger selling pressure, potentially leading to a test of the 200-day SMA. Conversely, maintaining a position above the $1.30 mark may provide a foundation for a rebound towards minor resistance at $1.3239.

The upward trend of USD/JPY

USD/JPY has shown a robust upward trend, rising from a late September low of ¥141.65 towards the mid-August high of ¥149.40. A rise above this level could indicate a medium-term bullish reversal.

Traders need to adapt their approaches to capitalize on emerging opportunities while managing risks effectively.

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