The major currency pairs are being affected by the strength of the US dollar. EUR/USD and GBP/USD are facing downward pressure, while USD/JPY is trending higher.

EUR/USD is currently testing the $1.06 level, which is a recovery from a one-year low. If it closes above this level, it could indicate a potential recovery, targeting the $1.0670 low from June. However, the recent steep losses suggest a trend change, and a close above $1.08 would be needed for a longer-term recovery outlook.

In GBP/USD, despite higher Consumer Price Index (CPI) readings, the pair has stalled. The next key support level to watch is $1.2860, which previously acted as support during the decline. If the price can maintain upward momentum, it may head back towards the $1.30 mark, while a drop below $1.26 would shift control back to sellers.

USD/JPY is pushing back towards recent highs after rallying from September lows. Buyers have stepped in after a brief dip below ¥154.00, indicating strong demand. However, there is an increased risk of Japanese foreign exchange intervention if the rally continues. A close below ¥154.00 could signal the start of a pullback in this pair.