USD/JPY trades at 159.359 after gaining 41 pips from Monday's open, with Tokyo inflation data and US GDP the key tests ahead.
The pound closed Wednesday at 1.34503, down 303 pips from Monday's 1.34806 open. Price peaked at 1.35087 on Monday before sliding to a three-day low of 1.34342 on Tuesday.
Dollar strength has dominated the first half of the week, with broader greenback bids pushing cable through multiple support levels. Tuesday's 413-pip range marked the sharpest intraday move, as the pair broke below 1.3450 support before recovering slightly into Wednesday's quieter session.
With no high-impact UK or US data scheduled for Thursday or Friday, price action will likely track broader dollar flows and risk sentiment. If the dollar maintains its bid and 1.3450 fails, the next obvious support sits at 1.3430. A recovery above 1.3480 would put Tuesday's 1.34965 high back in view.
Current positioning shows 50.3% long versus 49.7% short as of Wednesday morning. This near-even split suggests traders lack conviction after Tuesday's sharp decline, with neither bulls nor bears commanding a clear majority.
The 1.3450 round figure is the pivot right now, sitting just above Tuesday's 1.34342 low. If this level holds through Thursday, it validates as support. A clean break lower opens the door to 1.3430 and potentially 1.3400. Meanwhile, resistance at 1.3480 caps any recovery attempts.
Byline: LHFX Research
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EUR/USD sits at 1.16379 after grinding sideways for three days, with positioning nearly balanced at 51.6% long.
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