Market Analysis: EUR/USD Struggles, USD/JPY Could Extend Gains

FXOpen

EUR/USD started another decline from the 1.0915 resistance. USD/JPY surged and broke the 148.00 resistance zone.

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

· The Euro started a fresh decline below the 1.0880 support zone.

· There was a break below a key bullish trend line with support at 1.0880 on the hourly chart of EUR/USD at FXOpen.

· USD/JPY climbed higher above the 148.00 and 148.30 levels.

· There is a connecting bearish trend line forming with resistance at 148.00 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair struggled to clear the 1.0915 resistance zone. The Euro started a fresh decline and traded below the 1.0880 support zone against the US Dollar.

There was a break below a key bullish trend line with support at 1.0880. The pair even declined below 1.0840 and tested the 1.0820 zone. A low is formed near 1.0821 and the pair is now correcting losses.

On the upside, the pair is now facing resistance near the 50% Fib retracement level of the recent decline from the 1.0916 swing high to the 1.0821 low at 1.0865.

The next key resistance is near the 50-hour simple moving average at 1.0880. It is close to the 61.8% Fib retracement level of the recent decline from the 1.0916 swing high to the 1.0821 low. The main resistance is 1.0915.

A clear move above the 1.0915 level could send the pair toward the 1.0950 resistance. An upside break above 1.0950 could set the pace for another increase. In the stated case, the pair might rise toward 1.1020.

If not, the pair might resume its decline. The first major support on the EUR/USD chart is near 1.0840. The next key support is at 1.0820. If there is a downside break below 1.0820, the pair could drop toward 1.0785. The next support is near 1.0750, below which the pair could start a major decline.

USD/JPY Technical Analysis

On the hourly chart of USD/JPY at FXOpen, the pair started a strong increase from the 146.50 zone. The US Dollar gained bullish momentum above 148.00 against the Japanese Yen.

It even cleared the 50-hour simple moving average and 148.30. However, the pair struggled to clear the 148.70 zone. It is now correcting gains from the 148.69 high. There was a move below the 148.30 level.

On the downside, the first major support is near the 50% Fib retracement level of the upward move from the 146.97 swing low to the 148.69 high at 147.80. The next major support is visible near the 147.60 pivot level.

The 61.8% Fib retracement level of the upward move from the 146.97 swing low to the 148.69 high is also at 147.60. If there is a close below 147.60, the pair could decline steadily.

In the stated case, the pair might drop toward the 147.00 support zone. The next stop for the bears may perhaps be near the 146.20 region.

Immediate resistance on the USD/JPY chart is near a connecting bearish trend at 148.00. The first major resistance is near 148.30. If there is a close above the 148.30 level and the RSI stays moves 50, the pair could rise toward 148.70. The next major resistance is near 149.25, above which the pair could test 150.00 in the coming days.

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