EUR/USD is correcting higher from the 1.0520 zone. USD/JPY is also rising and might rally further above the 137.00 resistance.
Important Takeaways for EUR/USD and USD/JPY
· The Euro started an upside correction above the 1.0550 resistance zone.
· There was a break above a key bearish trend line with resistance near 1.0570 on the hourly chart of EUR/USD.
· USD/JPY is showing a lot of bullish signs above the 135.80 support zone.
· There is a major bullish trend line forming with support near 135.80 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro saw bearish moves below the 1.0600 support against the US Dollar. The EUR/USD pair even broke the 1.0580 support zone.
The pair gained pace below the 1.0550 support zone and traded as low as 1.0532 on FXOpen. The pair started an upside correction and traded above the 1.0550 resistance. There was a clear move above the 1.0580 level.
Besides, there was a break above a key bearish trend line with resistance near 1.0570 on the hourly chart of EUR/USD. A high was formed near 1.0645 and the pair started a fresh decline. There was a clear move below the 1.0600 support zone, but the pair stayed above the 50 hourly simple moving average.
There was a spike below the 61.8% Fib retracement level of the upward move from the 1.0532 swing low to 1.0645 high. It is now consolidating near the 1.0590 level.
On the upside, an immediate resistance is near the 1.0600 level. The next major resistance is near the 1.0640 level. An upside break above 1.0640 could set the pace for another increase. In the stated case, the pair might visit 1.0700.
Any more gains might send the pair towards 1.0750. If not, it could continue to move down. An initial support on the downside is near the 1.0570 level. The first major support is near the 1.0550 level.
The main support sits near the 1.0535 zone, below which the pair could start a major decline. In the stated case, the pair might dive towards the 1.0450 support zone.
USD/JPY Technical Analysis
The US Dollar started a fresh increase from the 130.00 zone against the Japanese Yen. The USD/JPY pair started a decent increase above the 132.50 resistance zone.
The pair even cleared the 135.00 resistance. A high was formed near 136.91 and the pair is now consolidating gains. There was a move below the 23.6% Fib retracement level of the upward move from the 134.06 swing low to 136.91 high.
An initial support on the downside is near the 135.80 level. There is also a major bullish trend line forming with support near 135.80 on the hourly chart.
The first major support is near the 135.15 level or the 50 hourly simple moving average. It is close to the 50% Fib retracement level of the upward move from the 134.06 swing low to 136.91 high, below which the pair could start a major decline.
In the stated case, the pair might dive towards the 134.00 support zone. Any more losses might send the USD/JPY pair towards the 132.50 support zone.
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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