EUR/USD started a fresh increase above the 1.0900 and 1.0920 resistance levels. USD/JPY is currently trading in a crucial range above the key 107.35 support zone.
Important Takeaways for EUR/USD and USD/JPY
- The Euro started a steady rise from the 1.0870 low and settled above 1.0920.
- There is a key bullish trend line forming with support near 1.0945 on the hourly chart of EUR/USD.
- USD/JPY is facing a lot of hurdles on the upside near the 107.90 and 108.00 levels.
- There is a short term declining channel forming with resistance near 107.55 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro started a steady increase from the 1.0870 swing low against the US Dollar. The EUR/USD pair broke the 1.0900 and 1.0920 resistance levels to enter a bullish zone.
Moreover, there was a close above the 1.0950 level and the 50 hourly simple moving average. The pair even climbed above the 1.0980 and traded as high as 1.0995 on FXOpen.
It is currently correcting lower and trading below the 23.6% Fib retracement level of the recent rise from the 1.0870 low to 1.0995 high. On the downside, there is a decent support forming near the 1.0950 level.
There is also a key bullish trend line forming with support near 1.0945 on the hourly chart of EUR/USD. Below the trend line, the 50% Fib retracement level of the recent rise from the 1.0870 low to 1.0995 high might provide support near 1.0935.
The next key support is near the 1.0930 level and the 50 hourly simple moving average. If the pair fails to stay above the 1.0950 and 1.0930 support levels, it is likely to resume its decline and continue lower towards the 1.0880 support.
Conversely, EUR/USD could start a fresh increase and trade above the 1.0980 resistance. The main resistance is near the 1.1000 level, above which the bulls are likely to aim a test of 1.1040 in the near term.
USD/JPY Technical Analysis
The US Dollar made a couple of attempts to clear the 108.00 resistance against the Japanese Yen. However, the USD/JPY pair failed to clear the 107.90 and 108.00 resistance levels.
As a result, there was a bearish reaction below the 107.80 level. The pair even broke the 107.60 level and settled below the 50 hourly simple moving average.
It tested the 107.35 support area, which has acted as a strong buy zone on many occasions recently. If the pair continues to move down and fails to stay above the 107.35 level, there is a risk of a sharp decline towards the 107.00 and 106.80 levels.
It is currently trading above the 23.6% Fib retracement level of the recent decline from the 107.92 high to 107.36 low. An initial resistance is near the 107.55 level. There is also a short term declining channel forming with resistance near 107.55 on the hourly chart.
If there is a break above the channel resistance, the pair could test the 107.65 level or the 50 hourly simple moving average. An intermediate resistance is near the 50% Fib retracement level of the recent decline from the 107.92 high to 107.36 low.
The main resistance on the upside is still near the 107.90 and 108.00 levels. If USD/JPY climbs above 108.00, it could surge towards 108.80 and 109.00.
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