EUR/USD Correcting Higher, USD/JPY Could Break 111.00

FXOpen

EUR/USD found support near the 1.1530 level and recovered nicely. USD/JPY is currently under bearish pressure and it seems like it could break the 111.00 support in the near term.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro found a strong support near the 1.1530 level and bounce back.
  • EUR/USD cleared a major bearish trend line with resistance at 1.1565 on the hourly chart.
  • USD/JPY is under pressure and is following a declining channel with resistance at 111.40 on the hourly chart.
  • It could decline further and remains at a risk of a break below 111.00.

EUR/USD Technical Analysis

There were heavy losses noted in the Euro below the 1.1600 handle against the US Dollar. The EUR/USD pair even broke the 1.1550 support and traded as low as 1.1530.

Later, buyers took a stand near the 1.1530, resulting in a decent upward move and recovery. The pair started a correction and moved above the 1.1550 resistance. It also cleared the 23.6% Fib retracement level of the last decline from the 1.1744 high to 1.1530 low.

EUR/USD Technical Analysis Euro Dollar Chart

More importantly, there was a break above a major bearish trend line with resistance at 1.1565 on the hourly chart. The pair settled above the 1.1600 level and the 50 hourly simple moving average.

However, the last support area near 1.1630-40 is currently acting as a resistance. Therefore, there is a chance of a minor downside correction in EUR/USD towards the 1.1580 level. There is a bullish trend line in place with support at 1.1585, which could act as a support zone.

Below 1.1580, the pair may move back towards the 1.1550 level. On the upside, above 1.1640, the next resistance is near the 61.8% Fib retracement level of the last decline from the 1.1744 high to 1.1530 low at 1.1663.

Overall, the current price action is positive in EUR/USD as long as the pair is trading above the 1.1580 support area.

USD/JPY Technical Analysis

The US Dollar formed a major top near the 112.10 level against the Japanese Yen. The USD/JPY pair started a solid downside move and broke many supports such as 111.80 and 111.50.

The pair recently traded as low as 110.99 and bounced back above 111.20. However, the upside move was capped by the 111.50 resistance. More importantly, there is a significant declining channel in place with resistance at 111.40 on the hourly chart.

USD/JPY Technical Analysis Dollar Yen Chart

The pair declined once again and broke the 111.20 support plus the 50 hourly simple moving average. Additionally, there was a break below the 50% Fib retracement level of the last wave from the 110.99 low to 111.47 high.

Therefore, there are high chances of more losses in USD/JPY below 111.10 in the near term. The pair may perhaps break the 111.00 support if sellers remain in action. The next support below 111.00 is near the 1.236 Fib extension level of the last wave from the 110.99 low to 111.47 high at 110.87.

Below 110.87, the pair could trade towards the 110.60 level. On the flip side, if the pair corrects higher form the current levels, it may well face sellers near the 111.20 level. Above this, the channel resistance at 111.40 is likely to act as a solid barrier for buyers.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media are

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. 60% 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.