EUR/USD Attempts Recovery While USD/JPY Trims Gains

FXOpen

EUR/USD started a fresh increase from the 1.0940 support zone. USD/JPY rallied above 124.50 before it faced sellers near 125.00.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started an upside correction from the 1.0940 zone.

· There was a break above a key bearish trend line with resistance near 1.1025 on the hourly chart of EUR/USD.

· USD/JPY started a strong upward move above the 122.00 and 123.50 resistance levels.

· Recently, there was a move below a major bullish trend line with support near 123.00 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started saw bearish moves below the 1.1050 level against the US Dollar. The EUR/USD pair declined heavily below the 1.1000 support zone.

The pair even broke the 1.0980 level and settled below the 50 hourly simple moving average. A low was formed near 1.0944 on FXOpen and the pair is now correcting higher. There was a move above the 1.1000 resistance levels.

EUR/USD Hourly Chart

Besides, there was a break above a key bearish trend line with resistance near 1.1025 on the hourly chart of EUR/USD. The pair climbed above the 1.1050 resistance and the 50 hourly simple moving average.

It formed a high near 1.1136 and is currently consolidating gains. It tested the 23.6% Fib retracement level of the recent increase from the 1.0944 swing low to 1.1136 high.

An immediate support is near the 1.1080. The next major support is near 1.1040 or the 50% Fib retracement level of the recent increase from the 1.0944 swing low to 1.1136 high, below which the pair could drop to 1.1000 in the near term.

An immediate resistance on the upside is near the 1.1120 level. The next major resistance is near the 1.1140 level. The main resistance is near the 1.1150 level. An upside break above 1.1150 could set the pace for a steady increase.

USD/JPY Technical Analysis

The US Dollar started a major increase after it broke the 120.00 resistance zone against the Japanese Yen. The USD/JPY pair broke the 122.00 level to move into a positive zone.

The pair even traded above the 123.50 level and the 50 hourly simple moving average. It traded as high as 125.09 and is currently correcting gains. There was a move below the 50% Fib retracement level of the upward move from the 121.17 swing low to 125.09 high.

USD/JPY Hourly Chart

Besides, there was a move below a major bullish trend line with support near 123.00 on the hourly chart. The pair is now struggling below the 122.00 level.

An initial support on the downside is near the 121.10 level. The next major support is near the 120.25 level. It is near the 1.236 Fib extension level of the upward move from the 121.17 swing low to 125.09 high.

Any more downsides might lead the pair towards the 119.50 support zone, below which the bears might aim a test of the 118.50 support zone in the near term.

On the upside, an initial resistance is near the 122.50 level. The next major resistance is near the 123.20. Any more gains could send the pair towards the 124.00 level. The next key hurdle is near the 125.00 level.

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 over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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

The Market Focusing on Speech of Federal Reserve Head Swiss Franc Weakens after Inflation News Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth

Latest articles

Indices

NASDAQ Rally Shows Tech Stocks Are Back in Focus - But for How Long?

The NASDAQ index, well known as a premier listing venue for North American technology companies across the entire spectrum from the Silicon Valley giants to recently listed newcomers, has been going from strength to strength during the beginning part of

Forex Analysis

The Market Focusing on Speech of Federal Reserve Head

Despite the abundance of fundamental data of the past trading week, the main currency pairs continue to trade in rather narrow flat corridors. Thus, the US dollar/yen currency pair is trading above 150.00, from time to time testing

Forex Analysis

Swiss Franc Weakens after Inflation News

Inflation in the country fell in February to its lowest level in nearly two-and-a-half years, data from Switzerland's Federal Statistical Office showed on Monday. Although consumer prices rose 1.2% compared to a year earlier, there is reason to believe

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. 65.68% 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.