EUR/USD Trims Gains, USD/JPY Aims New High

EUR/USD started another decline from the 1.0200 resistance. USD/JPY is rising and might soon clear the key 145.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a fresh decline and even traded below the 1.0020 support.

· There was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD.

· USD/JPY started a fresh increase after it remained well bid above the 141.50 support.

· There is a key bullish trend line forming with support near 142.30 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro was able to recover above the 1.0100 level against the US Dollar. The EUR/USD pair even broke the 1.0150 level, but the bears were active near the 1.0200 zone.

A high was formed near 1.0197 on FXOpen and the pair started a fresh decline. There was a clear move below the 1.0150 and 1.0120 support levels. The pair declined below the 50% Fib retracement level of the upward move from the 0.9864 swing low to 1.0197 high.

Besides, there was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD. The pair is now trading below the 1.0050 level and the 50 hourly simple moving average.

An immediate resistance on the upside is near the 1.0000 level. The next major resistance is near the 1.0030 level. An upside break above 1.0030 could set the pace for a steady increase. In the stated case, the pair might revisit 1.0080.

Any more gains might send the pair towards 1.0120. If not, the pair might drop and test the 0.9950 support. The next major support is near 0.9920, below which the pair could drop to 0.9860 in the near term.

USD/JPY Technical Analysis

The US Dollar started a fresh increase from the 141.50 support zone against the Japanese Yen. The USD/JPY pair cleared the 142.20 and 143.00 resistance levels to move back into a positive zone.

It gained pace for a close above the 144.00 level and the 50 hourly simple moving average. Besides, there was a break above the 50% Fib retracement level of the downside correction from the 144.98 swing high to 141.50 low.

It is now trading above the 144.20 level and the 50 hourly simple moving average. It is also above the 76.4% Fib retracement level of the downside correction from the 144.98 swing high to 141.50 low.

On the upside, an initial resistance is near the 145.00 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 150.00 level.

An initial support on the downside is near the 143.65 level. The next major support is near the 142.80 level. There is also a key bullish trend line forming with support near 142.30 on the hourly chart.

Any more downsides might lead the pair towards the 141.50 support zone, below which the bears might aim a test of the 140.00 support zone.

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.