EUR/USD Climbing Higher While USD/JPY Tumbles

FXOpen

EUR/USD is currently trading nicely above the 1.1160 and 1.1180 support levels. USD/JPY declined heavily recently and broke the 110.80 and 110.50 support levels.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro corrected lower recently and tested the 1.1160-1.1165 support area.
  • There is a major bearish trend line in place with resistance near 1.1208 on the hourly chart of EUR/USD.
  • USD/JPY declined heavily and settled below the key 110.50 support area.
  • There is a key bearish trend line formed with resistance at 110.35 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a fresh upward move after testing the 1.1135 level against the US Dollar. The EUR/USD pair broke the 1.1150 and 1.1160 resistance levels to move into a positive zone.

The pair traded as high as 1.1217 on FXOpen and recently corrected below the 1.1180 level. However, the 1.1160-1.1165 area acted as a support and the pair bounced back. It is now trading above the 1.1185 level and the 50 hourly simple moving average.

EUR/USD Technical Analysis Euro Dollar Chart

There was a break above the 50% Fib retracement level of the recent decline from the 1.1217 high to 1.1166 low. On the upside, there is a major resistance formed near 1.1208-1.1210. There is also a major bearish trend line in place with resistance near 1.1208 on the hourly chart of EUR/USD.

At the moment, the pair is near the 76.4% Fib retracement level of the recent decline from the 1.1217 high to 1.1166 low. A clear break above the trend line and the 1.1210 level may push the price towards the 1.1220 resistance.

Any further gains above 1.1220 is likely to lead the Euro towards the 1.1250 level. On the downside, an initial support is near the 1.1190 and the 50 hourly SMA. However, the main support is near the 1.1180 level and a connecting bullish trend line.

A daily close below 1.1180 and 1.1165 is likely to push EUR/USD back in a bearish zone in the near term towards 1.1120.

USD/JPY Technical Analysis

The US Dollar started the week on a negative note below 111.00 against the Japanese Yen. The USD/JPY pair opened with a gap lower and broke the key 110.80 support level to enter a bearish zone.

There was a steady decline and the pair settled below the 110.50 level and the 50 hourly simple moving average. During the decline, the pair formed a few bearish patterns on the hourly chart and recently traded as low as 109.96.

USD/JPY Technical Analysis Dollar Yen Chart

It is currently trading in a bearish zone, with an immediate resistance near 110.20, and the 23.6% Fib retracement level of the recent decline from the 110.95 high to 109.96 low.

On the upside, there is a key bearish trend line formed with resistance at 110.35 on the hourly chart. The trend line is close to the 38.2% Fib retracement level of the recent decline from the 110.95 high to 109.96 low.

The next key resistances are near the 110.50 and 110.55 levels. The 50 hourly simple moving average is also positioned near the 110.55 level. Therefore, a decent recovery won’t be easy in the near term.

On the downside, an initial support is near 110.00, below which USD/JPY could decline towards the 109.80 level or even test the 109.60 support.

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

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily Commodity Currencies Strengthen after the FOMC Minutes Publication EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release

Latest articles

Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

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.