EUR/USD Turns Red, USD/JPY Is Correcting Gains

Aayush Jindal -

EUR/USD started a fresh decline and traded below the key 1.1880 support zone. USD/JPY is correcting gains and it is now trading below the 108.80 support.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro failed to continue higher above 1.1950 and started a fresh decline.
  • There is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD.
  • USD/JPY started a downside correction from well above the 109.00 level.
  • There is a major bearish trend line forming with resistance near 108.65 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro struggled to gain bullish momentum above 1.1950 against the US Dollar. The EUR/USD pair formed a swing high near 1.1946 on FXOpen and recently started a fresh decline.

There was a break below a few important supports near the 1.1890 and 1.1880 levels. The pair even settled below the 1.1880 support zone and the 50 hourly simple moving average. A low is formed near 1.1836 and the pair is currently consolidating losses.

An initial resistance is near the 1.1860 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low.

The first major resistance is now forming near the 1.1890 and 1.1880 levels. The 50% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low is also near 1.1891. Moreover, there is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD.

Therefore, the pair must clear 1.1880 and 1.1920 to start a strong increase in the coming sessions. Conversely, the pair could continue to move down below the 1.1836 low. The first major support is near the 1.1820 level.

If there is a downside break below the 1.1820 support, the pair could dive towards the 1.1750 support in the near term. Any more losses might call for a test of the 1.1715 support level.

USD/JPY Technical Analysis

The US Dollar formed a short-term top near the 109.35 level against the Japanese Yen. As a result, the USD/JPY pair started a slow decline and broke the 109.00 support zone.

There was also a break below the 108.80 support level. The pair even broke the 108.50 support level and settled below the 50 hourly simple moving average. A low was formed near 108.40 before the pair corrected higher.

It broke the 108.65 level, but it failed to clear 108.80. A high is formed near 108.75 and the pair is currently declining. It broke the 50% Fib retracement level of the upward move from the 108.40 low to 108.75 high.

There is also a major bearish trend line forming with resistance near 108.65 on the hourly chart. The pair is now trading near the 76.4% Fib retracement level of the upward move from the 108.40 low to 108.75 high.

It seems like it might continue to move down below the 108.50 and 108.40 support levels. The next major support is near the 108.00 level. Any more losses might call for a move towards 107.40.

Conversely, the pair might start a fresh increase above the trend line resistance and 108.70. The main resistance is near 108.80, above which the USD/JPY pair could accelerate higher towards the 109.30 zone in the near term.