EUR/USD declined heavily to 1.0800 before it started an upside correction. USD/JPY surged above 115.50 and now consolidating gains.
Important Takeaways for EUR/USD and USD/JPY
· The Euro declined heavily below 1.1200 before it found support near 1.0800.
· There was a break above a key bearish trend line with resistance near 1.0900 on the hourly chart of EUR/USD.
· USD/JPY started a strong upward move above the 115.20 and 115.50 resistance levels.
· There is a major bullish trend line forming with support near 115.70 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro started a major decline from well above 1.1200 against the US Dollar. The EUR/USD pair declined heavily below the 1.1120 support zone.
The pair even broke the 1.0980 level and settled below the 50 hourly simple moving average. A low was formed near 1.0805 on FXOpen and the pair is now correcting higher. There was a move above the 23.6% Fib retracement level of the key decline from the 1.1232 swing high to 1.0805 low.
There was also a break above a key bearish trend line with resistance near 1.0900 on the hourly chart of EUR/USD. An immediate resistance on the upside is near the 1.0935 level.
The next major resistance is near the 1.0970 level. The main resistance is near the 1.1020 level. It is near the 50% Fib retracement level of the key decline from the 1.1232 swing high to 1.0805 low. An upside break above 1.1020 could set the pace for a steady increase.
If there is no break above 1.0935, the pair might start a fresh decline. An immediate support is near the 1.0880 and the 50 hourly simple moving average. The next major support is near 1.0820, below which the pair could drop to 1.0750 in the near term.
USD/JPY Technical Analysis
The US Dollar started a major increase after it broke the 115.00 resistance zone against the Japanese Yen. The USD/JPY pair broke the 115.50 level to move into a positive zone.
The pair even traded above the 115.80 level and the 50 hourly simple moving average. It traded as high as 115.91 and is currently consolidating gains. An initial support on the downside is near the 115.80 level. It is close to the 23.6% Fib retracement level of the upward move from the 115.41 swing low to 115.91 high.
The next major support is near the 115.70 level. There is also a major bullish trend line forming with support near 115.70 on the hourly chart.
A clear move below the trend line support and 115.70 may perhaps spark more losses. The next major support is near the 115.50 level. It is near the 76.4% Fib retracement level of the upward move from the 115.41 swing low to 115.91 high.
Any more downsides might lead the pair towards the 115.00 support zone, below which the bears might aim a test of the 114.50 support zone in the near term.
On the upside, an initial resistance is near the 115.95 level. The next major resistance is near the 116.20. Any more gains could send the pair towards the 116.80 level. The next key hurdle is near the 117.50 level.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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