EUR/USD started a steady increase above the 1.1650 and 1.1700 levels. USD/JPY is declining and it remains at a risk of more losses below 105.00.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started a fresh increase above the 1.1650 and 1.1700 resistance levels.
• There is a key bullish trend line forming with support near 1.1720 on the hourly chart of EUR/USD.
• USD/JPY declined heavily below the 106.80 and 106.00 support levels.
• There is a major bearish trend line forming with resistance near 105.25 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro followed a bullish path above the 1.1600 resistance level against the US Dollar. The EUR/USD pair even broke the 1.1680 level to move further into a positive zone.

The upward move was such that the pair surpassed the 1.1720 pivot level and settled above the 50 hourly simple moving average. It traded as high as 1.1781 on FXOpen and recent corrected lower.

It tested the 1.1700 pivot and support level. It is currently consolidating and slowly moving higher above 1.1710. It surpassed the 23.6% Fib retracement level of the recent correction from the 1.1781 high to 1.1698 low.

The first major resistance is near the 1.1740 level. It is close to the 50% Fib retracement level of the recent correction from the 1.1781 high to 1.1698 low. A successful break above the 1.1740 and 1.1750 resistance levels may perhaps open the doors for a sharp increase.

The next major resistance is near the 1.1780 level, above which the pair may even rise above the 1.1800 level. On the downside, there is a key bullish trend line forming with support near 1.1720 on the hourly chart of EUR/USD.

If there is a break below the trend line support, the pair could extend its decline towards the 1.1650 support level. The next major support is near the 1.1600 level.

USD/JPY Technical Analysis

The US Dollar remained in a bearish zone and it broke the main 106.80 support zone against the Japanese Yen. The USD/JPY pair traded below the 106.20 support to move further into a bearish zone.

Finally, there was a close below the 105.80 level and the 50 hourly simple moving average. A low is formed near 104.95 and the pair is currently consolidating losses.

An initial resistance on the upside is near the 105.25 level. It is close to the 38.2% Fib retracement level of the recent decline from the 105.68 high to 104.95 low. Moreover, there is a major bearish trend line forming with resistance near 105.25 on the hourly chart.

The trend line is also close to the 50 hourly SMA, and the 50% Fib retracement level of the recent decline from the 105.68 high to 104.95 low.

If USD/JPY surpasses the 105.25 and 105.30 resistance levels, there could be a decent upside correction towards the 105.50 level. The next major resistance is seen near the 105.80 level.

On the downside, the 105.00 level is a major support zone. A daily close below 105.00 may perhaps accelerate losses. The next major support could be near the 104.60 level, below which the bears are likely to aim a test of the 104.20 support zone in the coming sessions.

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