EUR/USD and EUR/JPY Attempt Recovery Wave

FXOpen

EUR/USD started a fresh decline and traded below 1.0150. EUR/JPY is attempting a recovery wave and might rise if it clears 139.50.

Important Takeaways for EUR/USD and EUR/JPY

· The Euro started a major decline from the 1.0250 and 1.0280 resistance levels.

· There is a short-term contracting triangle forming with resistance near 1.0145 on the hourly chart.

· EUR/JPY also started a major decline below the 140.00 and 139.50 support levels.

· There is a key bearish trend line forming with resistance near 139.20 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to clear the 1.0280 resistance against the US Dollar. The EUR/USD pair started a major decline below the 1.0220 and 1.0200 support levels.

There was a clear move below the 1.0150 level and the 50 hourly simple moving average. The pair even settled below the 1.0180 level. A low was formed near 1.0107 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.0250 swing high to 1.0107 low. On the upside, the pair is facing resistance near the 1.0145 level.

There is also a short-term contracting triangle forming with resistance near 1.0145 on the hourly chart. A clear move above the triangle resistance might send the price towards 1.0165. The next major resistance is near the 1.0180 level.

It is near the 50% Fib retracement level of the downward move from the 1.0250 swing high to 1.0107 low. If the bulls remain in action, the pair could revisit the 1.0250 resistance zone in the near term.

On the downside, the pair might find support near the 1.0120 level. The next major support sits near the 1.0100 level. If there is a downside break below the 1.0100 support, the pair might accelerate lower in the coming sessions.

EUR/JPY Technical Analysis

The Euro also started a fresh decline from the 142.00 resistance against the Japanese Yen. The EUR/JPY pair gained pace and traded below the 141.00 support level.

The pair even broke the 140.00 level and the 50 hourly simple moving average. It traded as low as 138.13 and is currently correcting losses. An immediate resistance on the upside is near the 139.00 level. It is near the 50% Fib retracement level of the downward move from the 139.83 swing high to 138.13 low.

EUR/JPY Hourly Chart

The next major resistance could be near the 139.20 level. There is also a key bearish trend line forming with resistance near 139.20 on the hourly chart.

The trend line is near the 61.8% Fib retracement level of the downward move from the 139.83 swing high to 138.13 low. If there is an upside break above the 139.20 resistance, the pair could test the 139.50 resistance. Any more gains might send the pair towards the 140.00 level.

If not, the pair could start a fresh decline below the 138.75 support. The next major support is near the 138.50 level. The main support sits near the 138.20 level. Any more losses could lead the pair towards the 137.50 support level in the near term.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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: American Currency Rises Sharply after Fed Meeting Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator Market Analysis: Commodity Currencies Find Short-term Bottom USD/CAD Analysis: How the Bank of Canada Decision Affected the National Currency Commodity Currencies, Pound and Euro in Search of Medium-term Bottom

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

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. 60% 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.