EUR/USD started a strong downward move from well above the 1.1250 level. USD/JPY is currently moving higher and it could continue to rise towards the 110.80 level.
Important Takeaways for EUR/USD and USD/JPY
- The Euro failed to stay above the 1.1250 level and declined below the 1.1200 support area.
- There is a key bearish trend line in place with resistance near 1.1170 on the hourly chart of EUR/USD.
- USD/JPY started a strong upward move above the 110.00 and 110.20 resistance levels.
- There is a major bullish trend line formed with support near 110.30 on the hourly chart.
EUR/USD Technical Analysis
The Euro started a strong downward move after it failed to gain pace above 1.1260 against the US Dollar. The EUR/USD pair declined heavily and broke many supports such as 1.1240, 1.1220 and 1.1200.
The pair even broke the 1.1180 support level and the 50 hourly simple moving average. It traded as low as 1.1141 on FXOpen and started an upside correction. It moved above the 1.1160 level and the 23.6% Fib retracement level of the recent decline from the 1.1223 high to 1.1141 low.
On the upside, there are many hurdles for the bulls near the 1.1170 and 1.1180 levels. There is also a key bearish trend line in place with resistance near 1.1170 on the hourly chart of EUR/USD.
The pair was recently rejected near the trend line and the 50% Fib retracement level of the recent decline from the 1.1223 high to 1.1141 low.
A proper close above the trend line could open the doors for more gains above the 1.1200 resistance level in the near term. The next key resistances are near the 1.1220 and 1.1240 levels.
On the downside, an initial support is near the 1.1150 level. If there is a downside break below the 1.1150 support, there are chances of more losses below the 1.1140 and 1.1120 levels.
USD/JPY Technical Analysis
The US Dollar formed a strong support base near the 109.00 level against the Japanese Yen. The USD/JPY pair started a steady rise and climbed above the 109.80 and 110.00 resistance levels.
There was a proper close above the 110.00 level and the 50 hourly simple moving average. The pair recently gained pace above the 110.40 level and traded as high as 110.67.
It is currently correcting lower below the 110.50 level and the 23.6% Fib retracement level of the recent wave from the 110.06 low to 110.67 high.
However, there are many supports on the downside near the 110.35 and 110.20 levels. The 50% Fib retracement level of the recent wave from the 110.06 low to 110.67 high is also near the 110.38 level to act as a support.
Moreover, there is a major bullish trend line formed with support near 110.30 on the hourly chart. If there is a downside break below the 110.20 level, the pair could continue to decline.
An immediate support below 110.20 is at 110.00, below which the pair may perhaps trade below the 109.80 level in the near term.
On the upside, an initial resistance is near the 110.65 level, above which USD/JPY could continue to move higher. If there is a break above 110.65 and 110.80, there could be a push above 111.00.
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