EUR/USD is showing positive signs above the 1.2150 pivot level. USD/JPY could extend its decline unless it clears the 109.60 resistance zone in the near term.
Important Takeaways for EUR/USD and USD/JPY
- The Euro started a fresh increase from the 1.2100 support zone.
- There is a key bearish trend line forming with resistance near 1.2185 on the hourly chart of EUR/USD.
- USD/JPY declined below the 109.90 and 109.60 support levels.
- There was a break below a major bullish trend line with support near 109.75 on the hourly chart.
EUR/USD Technical Analysis
Recently, the Euro saw a downside correction from well above the 1.2200 level against the US Dollar. The EUR/USD pair broke the 1.2150 support level and extended its decline.
However, the bulls were active above the 1.2100 level. A low was formed near 1.2103 on FXOpen and the pair is now rising. There was a break above the 1.2120 and 1.2150 resistance levels.
The pair even climbed above the 50% Fib retracement level of the recent decline from the 1.2249 high to 1.2103 low. It is now trading above the 1.2165 level and the 50 hourly simple moving average. The pair is now attempting an upside break above 1.2185 and 1.2190.
There is also a key bearish trend line forming with resistance near 1.2185 on the hourly chart of EUR/USD. The next key resistance is near the 1.2215 level.
The 76.4% Fib retracement level of the recent decline from the 1.2249 high to 1.2103 low is also near the 1.2215 level. A clear upside break above the trend line and then 1.2215 could open the doors for a larger increase. In the stated case, the pair could rise towards the 1.2250 level.
An intermediate support is near the 1.2175 level and the 50 hourly simple moving average. The next major support is near the 1.2150 level, below which the pair could drop towards the 1.2100 support.
USD/JPY Technical Analysis
The US Dollar started a fresh decline from the 110.30 resistance zone against the Japanese Yen. The USD/JPY pair broke the 109.90 support level to move into a bearish zone.
There was also a break below the 109.60 support and the 50 hourly simple moving average. There was also a break below a major bullish trend line with support near 109.75 on the hourly chart. A low was formed near 109.18 before the pair corrected higher.
It climbed above 109.50 and the 50 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the recent decline from the 110.32 high to 109.18 low.
It is now struggling to gain momentum above the 109.50 and 109.60 levels. The next major resistance is near the 109.75 level. The 50% Fib retracement level of the recent decline from the 110.32 high to 109.18 low is also near 109.75.
The main resistance is near the 109.90 level, above which the pair is likely to rise steadily in the coming sessions. On the downside, an immediate support is near the 109.40 level and the 50 hourly SMA.
The main support is near the 109.20 level. A downside break and close below 109.20 could open the doors for a larger decline. The next major support could be 108.80, followed by 108.50.
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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