EUR/USD and USD/JPY At Risk of Additional Losses

EUR/USD started another decline from the 1.0300 resistance. USD/JPY is declining and might continue to move down below 137.00.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a fresh decline and even traded below the 1.0200 support.

· There was a break below a key bullish trend line with support near 1.0205 on the hourly chart of EUR/USD.

· USD/JPY declined heavily from the 139.00 resistance zone.

· There was a break below a major bullish trend line with support near 136.30 on the hourly chart.

EUR/USD Technical Analysis

This week, the Euro started a fresh decline from well above the 1.0280 level against the US Dollar. The EUR/USD pair declined below the 1.0250 and 1.0220 support levels.

The bears even pushed the pair below the 1.0200 level. There was a close below 1.0200 and the 50 hourly simple moving average. The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.0097 swing low to 1.0293 high.

Besides, there was a break below a key bullish trend line with support near 1.0205 on the hourly chart of EUR/USD. An immediate resistance on the upside is near the 1.0200 level.

The next major resistance is near the 1.0225 level and the 50 hourly simple moving average. An upside break above 1.0225 could set the pace for a steady increase. In the stated case, the pair might revisit 1.0280.

If not, the pair might drop and test the 1.0165 support. The next major support is near 1.0145 or the 76.4% Fib retracement level of the upward move from the 1.0097 swing low to 1.0293 high, below which the pair could drop to 1.0100 in the near term.

USD/JPY Technical Analysis

The US Dollar started a fresh decline from the 139.00 resistance zone against the Japanese Yen. The USD/JPY pair broke the 138.00 level to move into a short-term bearish zone.

It gained pace for a close below the 137.20 level and the 50 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near 136.30 on the hourly chart. The pair even dived below the 132.00 support zone.

A low was formed near 130.41 and the pair started an upside correction. There was a move above the 23.6% Fib retracement level of the downward move from the 137.42 swing high to 130.41 low.

On the upside, an initial resistance is near the 133.00 level. The next major resistance is near the 134.00 level. It is close to the 50% Fib retracement level of the downward move from the 137.42 swing high to 130.41 low.

Any more gains could send the pair towards the 135.50 level. The next key hurdle is near the 136.00 level. An initial support on the downside is near the 132.50 level.

The next major support is near the 131.40 level. Any more downsides might lead the pair towards the 130.50 support zone, below which the bears might aim a test of the 130.00 support zone.

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.