Market Analysis: EUR/USD Restarts Increase While USD/JPY Corrects After Rally

EUR/USD started a fresh increase above the 1.1000 resistance. USD/JPY rallied significantly above 137.00 and recently started a downside correction.

Important Takeaways for EUR/USD and USD/JPY

· The Euro is rising and gaining pace above the 1.1000 resistance zone.

· There was a break above a key bearish trend line with resistance near 1.1000 on the hourly chart of EUR/USD at FXOpen.

· USD/JPY started a major rally above the 136.00 and 137.00 levels.

· There was a break below a key bullish trend line with support near 137.45 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair formed a base above the 1.0945 level. The Euro started a fresh increase above the 1.0965 resistance against the US Dollar.

There was a move above a key bearish trend line with resistance near 1.1000 and the 50-hour simple moving average. The pair is now trading above the 50% Fib retracement level of the downward move from the 1.1095 swing high to the 1.0972 low.

It is now facing resistance near the 61.8% Fib retracement level of the downward move from the 1.1095 swing high to the 1.0972 low at 1.1035.

The next major resistance is near the 1.1070 level. An upside break above 1.1070 could set the pace for another increase considering the hourly RSI is positioned nicely above 50. In the stated case, the pair might visit 1.1120. Any more gains might send the pair towards 1.1150.

If not, EUR/USD might start another decline from 1.1035. Initial support sits near the 1.1000 level. The first major support is near the 1.0965 level, below which the pair could start a major decline. In the stated case, the pair might dive toward the 1.0880 support zone.

USD/JPY Technical Analysis

On the hourly chart of USD/JPY at FXOpen, the pair started a fresh increase from the 133.00 zone. It gained bullish momentum and was able to clear the 135.00 resistance.

Finally, there was a move above 137.00 and the pair spiked above 137.50. A high is formed near 137.77 and the pair is now correcting gains. There was a minor decline below a break below a key bullish trend line with support near 137.45.

The pair declined below the 23.6% Fib retracement level of the upward move from the 130.33 swing low to the 137.77 high. It is now consolidating near the 136.00 support and trading well below the 50-hour simple moving average.

If there is a downside break below the 136.00 support, USD/JPY might extend losses. The next major support is near the 61.8% Fib retracement level of the upward move from the 130.33 swing low to the 137.77 high at 134.90, below which the pair could start a major decline.

In the stated case, the pair might dive toward the 133.00 support. Any more losses might send the USD/JPY pair toward the 132.15 support.

On the upside, the pair is facing resistance near the 50-hour simple moving average at 137.00. If there is a close above the 50-hour simple moving average, the pair could revisit 137.75. The next major resistance is near 138.00, above which the pair could test 138.80.

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