EUR/USD is attempting an upside correction and facing resistance near 1.0550. USD/JPY might correct lower if it trades below 130.00.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started an upside correction from the 1.0500 zone.

· There is a key bearish trend line forming with resistance near 1.0560 on the hourly chart of EUR/USD.

· USD/JPY extended rally above 130.00 and traded to a new multi-year high.

· There is a major bullish trend line forming with support near 130.00 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started saw bearish moves below the 1.0650 level against the US Dollar. The EUR/USD pair declined heavily below the 1.0550 support zone.

The pair even broke the 1.0500 level and settled below the 50 hourly simple moving average. A low was formed near 1.0482 on FXOpen and the pair is now correcting higher. There was a move above the 1.0550 resistance level.

However, the pair failed to gain pace above the 1.0600 level. It is now moving lower and trading below 1.0550. There was a break below the 50% Fib retracement level of the recent increase from the 1.0495 swing low to 1.0592 high.

It is now consolidating near the 61.8% Fib retracement level of the recent increase from the 1.0495 swing low to 1.0592 high. An immediate resistance on the upside is near the 1.0542 level. The next major resistance is near the 1.0560 level.

There is also a key bearish trend line forming with resistance near 1.0560 on the hourly chart of EUR/USD. The main resistance is near the 1.0600 level. An upside break above 1.0600 could set the pace for a steady increase.

If not, the pair might drop and test the 1.0500 support. The next major support is near 1.0480, below which the pair could drop to 1.0420 in the near term.

USD/JPY Technical Analysis

The US Dollar started a major increase after it broke the 128.00 resistance zone against the Japanese Yen. The USD/JPY pair broke the 130.00 level and extended rally.

The pair even traded above the 130.80 level and the 50 hourly simple moving average. It traded to a new 20-year high above 131.00 and is currently consolidating gains. There was a move below the 23.6% Fib retracement level of the upward move from the 128.62 swing low to 131.34 high.

An initial support on the downside is near the 130.00 level. There is also a major bullish trend line forming with support near 130.00 on the hourly chart.

The trend line is close to the 50% Fib retracement level of the upward move from the 128.62 swing low to 131.34 high. The next major support is near the 19.40 level. Any more downsides might lead the pair towards the 128.50 support zone, below which the bears might aim a test of the 127.20 support zone.

On the upside, an initial resistance is near the 130.80 level. The next major resistance is near the 131.40. Any more gains could send the pair towards the 132.50 level. The next key hurdle is near the 134.00 level.

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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