EUR/USD gained pace and tested the 1.0600 resistance zone. USD/JPY is rising and might rally if it clears the 137.50 resistance zone.
Important Takeaways for EUR/USD and USD/JPY
· The Euro started a downside correction from the 1.0600 resistance zone.
· There is a key bearish trend line forming with resistance near 1.0490 on the hourly chart of EUR/USD.
· USD/JPY declined sharply after it traded below the 142.00 support zone.
· There is a major bearish trend line forming with resistance near 137.50 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro found support near the 1.0300 zone against the US Dollar. The EUR/USD pair started a steady upward move above the 1.0400 and 1.0450 resistance levels.
There was a steady increase above the 1.0500 resistance zone and the 50 hourly simple moving average. The pair even climbed above the 1.0550 resistance zone. A high was formed near 1.0591 on FXOpen and the pair is now correcting gains.
There was a move below the 1.0550 support zone and the 50 hourly simple moving average. The pair traded below the 50% Fib retracement level of the upward move from the 1.0428 swing low to 1.0591 high.
An initial support on the downside is near the 1.0450 level. The first major support is near the 1.04250 level. The main support sits near the 1.0380 zone or the 1.236 Fib extension level of the upward move from the 1.0428 swing low to 1.0591 high, below which the pair could start a major decline.
On the upside, an immediate resistance is near the 1.0490 level. There is also a key bearish trend line forming with resistance near 1.0490 on the hourly chart of EUR/USD.
The next major resistance is near the 1.0520 level. An upside break above 1.0520 could set the pace for another increase. In the stated case, the pair might revisit 1.0580. Any more gains might send the pair towards 1.0650.
USD/JPY Technical Analysis
The US Dollar started a fresh decline from well above the 140.00 zone against the Japanese Yen. The USD/JPY pair declined below the 138.50 and 137.00 levels.
There was a drop below the 135.00 level and the 50 hourly simple moving average. The bears even pushed the pair below the 134.00 level. It tested the 133.65 zone. A low is formed near 133.62 and the pair is now correcting higher.
There was a move above the 135.50 level. The pair surpassed the 50% Fib retracement level of the downward move from the 139.89 swing high to 133.62 low.
An immediate resistance is near the 137.50 level. There is also a major bearish trend line forming with resistance near 137.50 on the hourly chart. The trend line is near the 61.8% Fib retracement level of the downward move from the 139.89 swing high to 133.62 low.
The next major resistance is near the 138.40 level. Any more gains could send the pair towards the 139.50 level. The next key hurdle is near the 140.00 level, above which USD/JPY may perhaps rise towards the 141.20 level in the coming sessions.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
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