EUR/USD Continues To Struggle, USD/JPY Gains Momentum

EUR/USD extended its decline and traded close to 1.1520. USD/JPY is rising and it might continue to climb above the 114.00 level.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a major decline below the 1.1650 and 1.1600 support levels.

· There is a major bearish trend line forming with resistance near 1.1575 on the hourly chart of EUR/USD.

· USD/JPY started a fresh increase and it cleared the 112.00 resistance zone.

· There is a key bullish trend line forming with support near 112.65 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started another decline below the 1.1650 support against the US Dollar. The EUR/USD pair traded below the 1.1600 support to move into a bearish zone.

The pair even broke the 1.1580 level and settled below the 50 hourly simple moving average. A low is formed near 1.1524 on FXOpen and the pair is now consolidating losses. An immediate resistance is near the 1.1560 level.

There is also a major bearish trend line forming with resistance near 1.1575 on the hourly chart of EUR/USD. The next major resistance is near the 1.1615 level.

The 23.6% Fib retracement level of the key decline from the 1.1899 swing high to 1.1524 low is also near the 1.1615 level. The first key resistance is near the 1.1670 level. The main resistance is near the 1.1720 level and the 50 hourly simple moving average.

It is close to the 50% Fib retracement level of the key decline from the 1.1899 swing high to 1.1524 low. A clear break above the 1.1720 zone could open the doors for a larger increase.

If there is no break above 1.1615, the pair might continue to move down. An immediate support is near the 1.1540. The next major support is near 1.1500, below which the pair could drop towards the 1.1450 support in the near term.

USD/JPY Technical Analysis

The US Dollar started a fresh increase from the 110.50 zone against the Japanese Yen. The USD/JPY pair broke the 111.50 and 112.00 resistance levels to move into a positive zone.

The upward move gained pace above the 112.50 level and the pair settled above the 50 hourly simple moving average. The pair traded as high as 113.81 and it is now consolidating gains.

It is now trading near the 113.45 level. An initial support on the downside is near the 113.10 level. It is near the 23.6% Fib retracement level of the upward move from the 110.82 swing low to 113.81 high.

The next major support is near the 112.80 level. There is also a key bullish trend line forming with support near 112.65 on the hourly chart. Any more downsides might lead the pair towards the 112.35 support zone.

The 50% Fib retracement level of the upward move from the 110.82 swing low to 113.81 high is also near 112.35 to act as a support. If there is a downside break below the 112.35 support, the pair could decline towards the 111.50.

On the upside, an initial resistance is near the 113.80 level. The next major resistance is near the 114.00 level, above which the pair is likely to rise steadily in the coming sessions.

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