Market Analysis: EUR/USD Rallies Post US CPI While USD/JPY Takes Hit

EUR/USD started a fresh increase above the 1.0775 resistance. USD/JPY is declining and showing bearish signs below the 151.00 level.

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

· The Euro is rising and trading well above the 1.0835 resistance zone.

· There is a key bullish trend line forming with support near 1.0775 on the hourly chart of EUR/USD at FXOpen.

· USD/JPY is trading in a bearish zone below the 151.00 and 150.70 levels.

· There was a break below a major bullish trend line with support at 151.65 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.0660 zone. The Euro climbed above the 1.0750 resistance zone against the US Dollar.

The pair even settled above the 1.0775 resistance and the 50-hour simple moving average. Finally, it tested the 1.0885 resistance. A high is formed near 1.0887 and the pair is now consolidating gains.

If there is a downside correction, the pair might test the 23.6% Fib retracement level of the upward move from the 1.0665 swing low to the 1.0886 high at 1.0835. The next major support is forming near a key bullish trend line at 1.0775.

The trend line is close to the 50% Fib retracement level of the upward move from the 1.0665 swing low to the 1.0886 high. The next key support is near the 50-hour simple moving average at 1.0750. If there is a downside break below 1.0750, the pair could drop toward the 1.0705 support. The main support on the EUR/USD chart is near 1.0660, below which the pair could start a major decline.

On the upside, the pair is now facing resistance near 1.0885. The next major resistance is near the 1.0920 level. An upside break above 1.0920 could set the pace for another increase. In the stated case, the pair might rise toward 1.0980.

USD/JPY Technical Analysis

On the hourly chart of USD/JPY at FXOpen, the pair started a strong decline well above the 151.80 zone. The US Dollar gained bearish momentum below the 151.50 support against the Japanese Yen.

There was a break below a major bullish trend line with support at 151.65. The pair even settled below the 151.00 level and the 50-hour simple moving average. Finally, it broke the 150.70 pivot level. A low is formed near 150.15 and the pair is now showing a lot of bearish signs.

It is trading near the 23.6% Fib retracement level of the downward move from the 151.90 swing high to the 150.15 low. Immediate resistance on the USD/JPY chart is near 150.70.

The first major resistance is near the 50% Fib retracement level of the downward move from the 151.90 swing high to the 150.15 low at 151.00. The main resistance is near the 50-hour simple moving average at 151.30.

If there is a close above the 151.30 level and the hourly RSI moves above 50, the pair could rise toward 151.90. The next major resistance is near 152.50, above which the pair could test 154.00 in the coming days.

On the downside, the first major support is near 150.40. The next major support is near the 150.15 level. If there is a close below 150.15, the pair could decline steadily. In the stated case, the pair might drop toward the 148.50 support.