EUR/USD started a downside correction from the 1.1075 resistance. USD/JPY is rising and might rally further above the 134.30 resistance.
Important Takeaways for EUR/USD and USD/JPY
· The Euro struggled to stay above 1.1000 and corrected lower.
· There is a key bearish trend line forming with resistance near 1.0990 on the hourly chart of EUR/USD at FXOpen.
· USD/JPY is showing a lot of bullish signs above the 133.85 support zone.
· There is a major bearish trend line forming with resistance near 134.30 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 1.1075 resistance. The Euro started a fresh decline below 1.1000 against the US Dollar.
There was a drop below the 1.0935 support but the bulls were active near the 1.0910 support. A low is formed near 1.0909 and the pair is now attempting a fresh increase. There was a break above the 1.0935 level and the 50-hour simple moving average.
It is now facing resistance near a key bearish trend line forming with resistance near 1.0990. The trend line is close to the 50% Fib retracement level of the downward move from the 1.1075 swing high to the 1.0910 low.
The next major resistance is near the 76.4% Fib retracement level of the downward move from the 1.1075 swing high to the 1.0910 low at 1.1035. An upside break above 1.1035 could set the pace for another increase. In the stated case, the pair might visit 1.1075. Any more gains might send the pair towards 1.1150.
If not, EUR/USD might decline again below the 1.0935 support. The first major support is near the 1.0910 level, below which the pair could start a major decline. In the stated case, the pair might dive toward the 1.0835 support zone.
USD/JPY Technical Analysis
On the hourly chart of USD/JPY at FXOpen, the pair started a fresh increase from the 132.15 zone. It gained bullish momentum and was able to clear the 133.00 resistance.
Finally, there was a move above 134.00 but the bears were active near 134.70. A high was formed near 134.70 before the pair corrected lower to 133.85. It is rising again and trading above the 50-hour simple moving average.
There was a break above the 50% Fib retracement level of the downward move from the 134.70 swing high to the 133.85 low. On the upside, the pair is facing resistance near a major bearish trend line forming with resistance near 134.30.
The trend line coincides with the 61.8% Fib retracement level of the downward move from the 134.70 swing high to the 133.85 low. A clear move above the trend line resistance might call for a retest of 134.70. The next major resistance is near 135.00, above which the pair could test 135.50.
Initial support on the downside is near the 50-hour simple moving average. The first major support is near 133.85, 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.
This forecast represents FXOpen Companies’ opinion only, it should not be construed as an offer, invitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.
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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.
