EUR/USD started a strong decline from the 1.1880 resistance, and it declined below 1.1800. USD/JPY is recovering nicely and it could surpass the 105.50 resistance.

Important Takeaways for EUR/USD and USD/JPY

• The Euro failed to clear the 1.1880 and 1.1900 resistance levels, and declined sharply.
• There was a break below a declining channel with support near 1.1710 on the hourly chart of EUR/USD.
• USD/JPY started a fresh recovery and it traded above the 104.80 resistance.
• There was a break above a crucial bearish trend line with resistance near 104.65 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro made a few attempts to clear the 1.1880 and 1.1900 resistance levels against the US Dollar. The EUR/USD pair failed to gain traction, resulting in a sharp decline below the 1.1800 support.

The pair gained bearish momentum below the 1.1750 support level and the 50 hourly simple moving average. Moreover, there was a break below a declining channel with support near 1.1710 on the hourly chart of EUR/USD.

The pair even broke the 1.1700 support and traded as low as 1.1675 on FXOpen. It is currently consolidating losses above the 1.1675 low. An initial resistance on the upside is near the broken channel support at 1.1700.

The 23.6% Fib retracement level of the recent decline from the 1.1767 high to 1.1675 low is also near the 1.1696 level. The next major resistance on the upside is near the 1.1720 level.

The 50% Fib retracement level of the recent decline from the 1.1767 high to 1.1675 low is near 1.1720 to act as a hurdle. To move into a positive zone, the bulls need to gain pace above the 1.1720 and 1.1740 resistance levels.

Conversely, EUR/USD could continue to move down below the 1.1675 low. The next major support is near the 1.1650 level, below which the pair could test the 1.1620 level.

USD/JPY Technical Analysis

The US Dollar remained well bid above the 104.00 level, and started a fresh recovery wave against the Japanese Yen. The USD/JPY pair broke the 104.25 resistance to start the current recovery wave.

The pair even surpassed the 105.00 resistance and the 50 hourly simple moving average. Moreover, there was a break above a crucial bearish trend line with resistance near 104.65 on the hourly chart.

It opened the doors for more gains above the 105.10 level. The pair traded as high as 105.19 and it is currently consolidating gains. An initial support is near the 105.00 level or the 23.6% Fib retracement level of the recent increase from the 104.40 low to 105.19 high.

The first major support is near the 104.85 level. The 50% Fib retracement level of the recent increase from the 104.40 low to 105.19 high is also near the 104.80 level. If there are more losses, the pair could decline towards the 104.70 level or the 50 hourly simple moving average.

Any further losses might push USD/JPY back into a bearish zone towards 104.00. On the upside, the pair is facing hurdles near the 105.20 level. A clear break above the 105.20 barrier might lead the pair towards the 105.50 and 105.60 resistance levels in the near term.

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