EUR/USD Recovers Ground, USD/JPY Could Resume Uptrend

FXOpen

EUR/USD started a decent recovery wave above the 0.9900 resistance zone. USD/JPY is rising and might soon clear the key 145.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

· The Euro formed a base and started a decent recovery wave above the 0.9800 zone.

· There is a major bullish trend line forming with support near 0.9910 on the hourly chart of EUR/USD.

· USD/JPY declined sharply before it found support near the 143.50 level.

· There was a break below a key bullish trend line with support near 144.55 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro found support near the 0.9550 zone against the US Dollar. The EUR/USD pair started a steady recovery wave above the 0.9600 and 0.9680 resistance levels.

There was a steady increase above the 0.9800 resistance zone and the 50 hourly simple moving average. The pair even climbed above the 0.9900 resistance zone. A high was formed near 0.9998 on FXOpen and the pair is now correcting lower.

An initial support on the downside is near the 0.9940 level. It is near the 23.6% Fib retracement level of the upward move from the 0.9754 swing low to 0.9998 high.

The first major support is near the 0.9920 level. There is also a major bullish trend line forming with support near 0.9910 on the hourly chart of EUR/USD. The main support sits near the 0.9880 zone. It is near the 50% Fib retracement level of the upward move from the 0.9754 swing low to 0.9998 high.

An immediate resistance on the upside is near the 1.0000 level. The next major resistance is near the 1.0050 level. An upside break above 1.0050 could set the pace for another increase. In the stated case, the pair might revisit 1.0150.  Any more gains might send the pair towards 1.0200.

USD/JPY Technical Analysis

The US Dollar started a fresh decline from well above the 145.00 zone against the Japanese Yen. The USD/JPY pair declined below the 144.50 and 144.00 levels.

Besides, there was a break below a key bullish trend line with support near 144.55 on the hourly chart. There was a drop below the 143.80 level and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near 144.55 on the hourly chart.

It tested the 143.50 zone. A low is formed near 143.52 and the pair is now correcting higher. There was a move above the 144.00 level.

The pair is now trading near the 38.2% Fib retracement level of the downside correction from the 145.31 swing high to 143.52 low. On the upside, an initial resistance is near the 144.50 level.

The 50% Fib retracement level of the downside correction from the 145.31 swing high to 143.52 low is also near the 144.50 level. The next major resistance is near the 145.50 level. Any more gains could send the pair towards the 146.50 level. The next key hurdle is near the 148.00 level.

An initial support on the downside is near the 144.00 level. The next major support is near the 143.50 level. Any more downsides might lead the pair towards the 142.50 support zone, below which the bears might aim a test of the 141.20 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.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

Latest articles

Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks

The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid

Indices

S&P 500 Analysis: Price Reaches The Edge of Abyss

Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached

Cryptocurrencies

Bitcoin Cash Analysis: Promising Resistance Breakout

Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.