EUR/USD started a fresh increase after testing the 1.1950 support zone. USD/JPY declined below the 105.00 support and tested the 104.50 zone.
Important Takeaways for EUR/USD and USD/JPY
- The Euro found support near the 1.1950 region and it started a fresh increase above 1.2050.
- There is a key bullish trend line forming with support near 1.2100 on the hourly chart of EUR/USD.
- USD/JPY declined heavily below the 105.20 and 105.00 support levels.
- There was a break below a major bullish trend line with support at 105.30 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro declined below the 1.2050 and 1.2000 support levels against the US Dollar. The EUR/USD pair traded close to the 1.1950 zone, where it found support.
A low was formed near 1.1952 on FXOpen before the pair started a fresh increase. It climbed back above the 1.2000 level and the 50 hourly simple moving average. There was also a break above the 50% Fib retracement level of the downward move from the 1.2155 swing high to 1.1952 low.
It is now trading above the 76.4% Fib retracement level of the downward move from the 1.2155 swing high to 1.1952 low. There is also a key bullish trend line forming with support near 1.2100 on the hourly chart of EUR/USD.
An immediate resistance is near the 1.2120 level. The main resistance is near the 1.2155, above which EUR/USD is likely to accelerate higher towards the 1.2200 resistance area.
Conversely, the pair could start a fresh decline below the 1.2100 support and the trend line. The first major support is near the 1.2075 level and the 50 hourly simple moving average.
If there is a downside break below the 50 hourly simple moving average, the pair could dive towards the 1.2000 handle in the near term. Any more losses might call for a retest of the 1.1950 support level.
USD/JPY Technical Analysis
The US Dollar failed to surpass the 105.80 and 106.00 resistance levels against the Japanese Yen. As a result, the USD/JPY pair started a fresh decline below the 105.20 support level.
The pair broke the 105.00 support level and the 50 hourly simple moving average. It traded as low as 104.49 and it is currently consolidating losses. An immediate resistance is near the 104.75 level.
It is close to the 23.6% Fib retracement level of the downward move from the 105.67 high to 104.99 low. The first key resistance is near the 104.85 level. A clear break above the 104.85 level may possibly lead the pair towards the 105.00 resistance and the 50 hourly simple moving average.
The next major resistance could be near the 50% Fib retracement level of the downward move from the 105.67 high to 104.99 low. Any more upsides might call for a test of the key 105.50 resistance level. An intermediate resistance could be near the 105.15 level.
Conversely, there is a risk of more losses below the 104.55 and 104.50 support levels. The next major support is near the 104.00 level.
If USD/JPY fails to stay above the 104.00 support level, there are chances of a downside extension towards the 103.20 support level in the near term.
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