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

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.