EUR/USD Correcting Gains While USD/JPY Is Rising Steadily

Aayush Jindal -

EUR/USD spiked above the 1.2000 resistance before starting a downside correction. USD/JPY is recovering nicely and it is trading above the 106.00 level.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro climbed higher nicely above 1.2000 before starting a downside correction.
  • There was a break below a connecting bullish trend line with support near 1.1920 on the hourly chart of EUR/USD.
  • USD/JPY started a fresh recovery and it traded above the 105.80 resistance.
  • There is a major bullish trend line forming with support near 105.90 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro gained bullish momentum above the 1.1900 resistance level against the US Dollar. The EUR/USD pair even climbed above the 1.1950 resistance zone move further into a positive zone.

Finally, the pair spiked above the 1.2000 resistance level and traded as high as 1.2010 on FXOpen. Recently, the pair started a downside correction below the 1.1980 support.

There was a break below the 1.1950 support and the 50 hourly simple moving average. The pair traded below the 38.2% Fib retracement level of the upward move from the 1.1762 low to 1.2010 high.

Moreover, there was a break below a connecting bullish trend line with support near 1.1920 on the hourly chart of EUR/USD. The pair is now trading near the 1.1900 support level. The first major support is near the 1.1885 level.

The 50% Fib retracement level of the upward move from the 1.1762 low to 1.2010 high is also near the 1.1885 level. The next major support is near the 1.1850 level, below which the pair might move into a bearish zone.

Conversely, EUR/USD could start a fresh increase from 1.1880 or 1.1850. On the upside, the 1.1950 and 1.1965 levels are initial hurdles, above which the pair could revisit the 1.2000 resistance in the near term. Any further gains could lead the pair towards the 1.2050 level.

USD/JPY Technical Analysis

The US Dollar found support near the 105.20 level and started a fresh recovery wave against the Japanese Yen. The USD/JPY pair broke the 105.50 resistance to start the current recovery wave.

The pair remained stable above the 105.80 resistance and the 50 hourly simple moving average. It is now trading near the 106.10 resistance, and the 50% Fib retracement level of the downward move from the 106.94 high to 105.20 low.

There is also a major bullish trend line forming with support near 105.90 on the hourly chart. If there is a downside break below the trend line, the pair could start a fresh decline below 105.80.

The next major support is near the 105.50 level, below which the pair might revisit the 105.20 support level in the coming days. On the upside, a break above the 106.10 resistance is needed for more gains.

The next major resistance is near the 106.30 level or the 61.8% Fib retracement level of the downward move from the 106.94 high to 105.20 low. A successful close above 106.30 might push the pair towards the 106.55 and 106.80 level.

The next major resistance is near the 107.00 level, above which USD/JPY might aim a test of the 107.50 barrier in the near term.