Market Analysis: EUR/USD Smashes Resistance While USD/JPY Nosedives

FXOpen

EUR/USD started a fresh increase above the 1.0975 resistance. USD/JPY is declining and showing bearish signs below the 141.20 level.

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

· The Euro is rising and trading well above the 1.1020 resistance zone.

· There is a key bullish trend line forming with support near 1.1020 on the hourly chart of EUR/USD at FXOpen.

· USD/JPY is trading in a bearish zone below the 141.20 and 140.20 levels.

· There is a major bearish trend line forming with resistance near 140.20 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 1.0835 zone. The Euro climbed above the 1.0900 resistance zone against the US Dollar.

The pair even settled above the 1.0975 resistance and the 50-hour simple moving average. There was an upside break above the 76.4% Fib retracement level of the downside correction from the 1.1026 swing high to the 1.0977 low.

The pair is now consolidating gains below the 1.1040 resistance. The first major support is near a key bullish trend line at 1.1020.

The next key support is near the 50-hour simple moving average at 1.0995. If there is a downside break below 1.0995, the pair could drop toward the 1.0975 support. The main support on the EUR/USD chart is near 1.0900, below which the pair could start a major decline.

On the upside, the pair is now facing resistance near the 1.236 Fib extension level of the downside correction from the 1.1026 swing high to the 1.0977 low at 1.1040.

The next major resistance is near the 1.1065 level. An upside break above 1.1065 could set the pace for another increase. In the stated case, the pair might rise toward 1.1120.

USD/JPY Technical Analysis

On the hourly chart of USD/JPY at FXOpen, the pair started a strong decline well above the 143.50 zone. The US Dollar gained bearish momentum below the 142.15 support against the Japanese Yen.

The pair even settled below the 141.20 level and the 50-hour simple moving average. Finally, it broke the 140.00 pivot level. A low is formed near 139.38 and the pair is now showing a lot of bearish signs. Immediate resistance on the USD/JPY chart is near a bearish trend line at 140.20.

The 23.6% Fib retracement level of the downward move from the 143.00 swing high to the 139.38 low is also near 140.20. The first major resistance is near the 50-hour simple moving average at 141.20.

If there is a close above the 141.20 level and RSI moves above 50, the pair could rise toward the 76.4% Fib retracement level of the downward move from the 143.00 swing high to the 139.38 low at 142.15. The next major resistance is near 143.50, above which the pair could test 144.00 in the coming days.

On the downside, the first major support is near 139.35. The next major support is near the 139.00 level. If there is a close below 139.00, the pair could decline steadily. In the stated case, the pair might drop toward the 137.50 support.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Latest from Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily Commodity Currencies Strengthen after the FOMC Minutes Publication EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release

Latest articles

Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.