EUR/USD Faces Hurdle While USD/JPY Aims Recovery

EUR/USD is stable above the 1.0600 support zone. USD/JPY could gain bullish momentum if there is a clear move above the 135.00 resistance.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a downside correction from the 1.0670 resistance zone.

· There is a key bullish trend line forming with support near 1.0635 on the hourly chart of EUR/USD.

· USD/JPY is attempting a recovery wave from the 130.60 support zone.

· Earlier, there was a break below a rising channel with support near 135.00 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro found support near the 1.0570 zone against the US Dollar. The EUR/USD pair started a steady upward move above the 1.0600 and 1.0620 resistance levels.

There was a clear increase above the 1.0650 resistance zone and the 50 hourly simple moving average. The pair even climbed towards the 1.0670 resistance zone. A high was formed near 1.0669 on FXOpen and the pair is now correcting gains.

There was a move below the 1.0650 support zone, but the pair remained stable above the 50 hourly simple moving average. A low is formed near 1.0611 and the pair is now rising.

There was a move towards the 1.0640 level. It tested the 50% Fib retracement level of the downward move from the 1.0669 swing high to 1.0611 low. On the upside, an immediate resistance is near the 1.0650 level.

The next major resistance is near the 1.0670 level. An upside break above 1.0670 could set the pace for another increase. In the stated case, the pair might visit 1.0720. Any more gains might send the pair towards 1.0780.

An initial support on the downside is near the 1.0635 level. There is also a key bullish trend line forming with support near 1.0635 on the hourly chart of EUR/USD.

The first major support is near the 1.0625 level. The main support sits near the 1.0600 zone, below which the pair could start a major decline. In the stated case, the pair might dive towards the 1.0550 support zone.

USD/JPY Technical Analysis

The US Dollar started a fresh decline from well above the 139.00 zone against the Japanese Yen. The USD/JPY pair declined below the 136.50 and 135.00 levels.

There was a drop below the 133.00 level and the 50 hourly simple moving average. There was a break below a rising channel with support near 135.00 on the hourly chart. The bears even pushed the pair below the 132.00 level.

It tested the 130.60 zone. A low is formed near 130.57 and the pair is now correcting higher. There was a move above the 132.00 level. The pair surpassed the 50% Fib retracement level of the downward move from the 137.45 swing high to 130.57 low.

An immediate resistance is near the 134.85 level. It is close to the 61.8% Fib retracement level of the downward move from the 137.45 swing high to 130.57 low.

The next major resistance is near the 135.00 level. Any more gains could send the pair towards the 136.50 level. The next key hurdle is near the 138.00 level, above which USD/JPY may perhaps rise towards the 140.00 level in the coming days.

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.