Market Analysis: EUR/USD Extends Rally While USD/JPY Nosedives

FXOpen

EUR/USD gained bullish momentum above the 1.0930 resistance. USD/JPY is declining and showing bearish signs below the 148.20 level.

Important Takeaways for EUR/USD and USD/JPY Analysis Today

· The Euro remained in a bullish zone and climbed above the 1.0965 resistance zone.

· There is a key bullish trend line forming with support near 1.0975 on the hourly chart of EUR/USD at FXOpen.

· USD/JPY is trading in a bearish zone below the 148.20 and 147.40 levels.

· There is a major bearish trend line forming with resistance near 147.40 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started fresh above the 1.0900 zone. The Euro climbed above the 1.0930 resistance zone against the US Dollar, as mentioned in the previous analysis.

The pair even settled above the 1.0965 resistance and the 50-hour simple moving average. Finally, it tested the 1.1020 resistance. A high is formed near 1.1017 and the pair is now consolidating gains.

If there is a downside correction, the pair might test the 50% Fib retracement level of the upward move from the 1.0935 swing low to the 1.1017 high at 1.0975. There is also a key bullish trend line forming with support near 1.0975.

The next major support is near the 61.8% Fib retracement level of the upward move from the 1.0935 swing low to the 1.1017 high and the 50-hour simple moving average at 1.0965.

If there is a downside break below 1.0965, the pair could drop toward the 1.0930 support. The main support on the EUR/USD chart is near 1.0895, below which the pair could start a major decline.

On the upside, the pair is now facing resistance near 1.1020. The next major resistance is near the 1.1050 level. An upside break above 1.1050 could set the pace for another increase. In the stated case, the pair might rise toward 1.1140.

USD/JPY Technical Analysis

On the hourly chart of USD/JPY at FXOpen, the pair started a strong decline well above the 148.95 zone. The US Dollar gained bearish momentum below the 148.20 support against the Japanese Yen.

The pair even settled below the 147.40 level and the 50-hour simple moving average. Finally, it broke the 146.80 pivot level. A low is formed near 146.67 and the pair is now showing a lot of bearish signs. Immediate resistance on the USD/JPY chart is near 147.40.

There is also a major bearish trend line forming with resistance near 147.40. The trend line is close to the 23.6% Fib retracement level of the downward move from the 149.67 swing high to the 146.67 low.

The first major resistance is near the 50% Fib retracement level of the downward move from the 149.67 swing high to the 146.67 low at 148.20 and the 50-hour simple moving average.

If there is a close above the 148.20 level and the hourly RSI moves above 50, the pair could rise toward 148.95. The next major resistance is near 149.65, above which the pair could test 150.00 in the coming days.

On the downside, the first major support is near 146.65. The next major support is near the 146.20 level. If there is a close below 146.20, the pair could decline steadily. In the stated case, the pair might drop toward the 145.00 support.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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