EUR/USD Correcting Higher, USD/JPY Could Break 111.00

FXOpen

EUR/USD found support near the 1.1530 level and recovered nicely. USD/JPY is currently under bearish pressure and it seems like it could break the 111.00 support in the near term.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro found a strong support near the 1.1530 level and bounce back.
  • EUR/USD cleared a major bearish trend line with resistance at 1.1565 on the hourly chart.
  • USD/JPY is under pressure and is following a declining channel with resistance at 111.40 on the hourly chart.
  • It could decline further and remains at a risk of a break below 111.00.

EUR/USD Technical Analysis

There were heavy losses noted in the Euro below the 1.1600 handle against the US Dollar. The EUR/USD pair even broke the 1.1550 support and traded as low as 1.1530.

Later, buyers took a stand near the 1.1530, resulting in a decent upward move and recovery. The pair started a correction and moved above the 1.1550 resistance. It also cleared the 23.6% Fib retracement level of the last decline from the 1.1744 high to 1.1530 low.

EUR/USD Technical Analysis Euro Dollar Chart

More importantly, there was a break above a major bearish trend line with resistance at 1.1565 on the hourly chart. The pair settled above the 1.1600 level and the 50 hourly simple moving average.

However, the last support area near 1.1630-40 is currently acting as a resistance. Therefore, there is a chance of a minor downside correction in EUR/USD towards the 1.1580 level. There is a bullish trend line in place with support at 1.1585, which could act as a support zone.

Below 1.1580, the pair may move back towards the 1.1550 level. On the upside, above 1.1640, the next resistance is near the 61.8% Fib retracement level of the last decline from the 1.1744 high to 1.1530 low at 1.1663.

Overall, the current price action is positive in EUR/USD as long as the pair is trading above the 1.1580 support area.

USD/JPY Technical Analysis

The US Dollar formed a major top near the 112.10 level against the Japanese Yen. The USD/JPY pair started a solid downside move and broke many supports such as 111.80 and 111.50.

The pair recently traded as low as 110.99 and bounced back above 111.20. However, the upside move was capped by the 111.50 resistance. More importantly, there is a significant declining channel in place with resistance at 111.40 on the hourly chart.

USD/JPY Technical Analysis Dollar Yen Chart

The pair declined once again and broke the 111.20 support plus the 50 hourly simple moving average. Additionally, there was a break below the 50% Fib retracement level of the last wave from the 110.99 low to 111.47 high.

Therefore, there are high chances of more losses in USD/JPY below 111.10 in the near term. The pair may perhaps break the 111.00 support if sellers remain in action. The next support below 111.00 is near the 1.236 Fib extension level of the last wave from the 110.99 low to 111.47 high at 110.87.

Below 110.87, the pair could trade towards the 110.60 level. On the flip side, if the pair corrects higher form the current levels, it may well face sellers near the 111.20 level. Above this, the channel resistance at 111.40 is likely to act as a solid barrier for buyers.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January USD Strengthens Sharply after Inflation News USD/JPY: Analysts Adjust Forecasts for the Strengthening of the Yen Major Currency Pairs Consolidating after the Release of US Inflation Data GBP/USD: Bulls Show Resilience amid Inflation and GDP News

Latest articles

Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January

The US dollar strengthened on Friday ahead of a series of highly anticipated central bank meetings next week, including the US Federal Reserve. The dollar rose 1.3% for the week, its biggest gain since mid-January, after a mixed batch

Shares

Tesla Stock Hits a Low Point as Musk Sues Openai - Is This Year a Total Write-Off?

Occasionally during the course of industrial progress, there is a maverick; a voice that is known for continual disruption and maintaining a high-profile position whilst engaging in such disruption. The figure of this decade is Elon Musk, a self-starter whose

Trader’s Tools

Analytical Forecasts: How Much AAPL Stock May Cost in the Next 10 Years

In today’s tech landscape, Apple Inc. has consistently been at the forefront, shaping the future with its innovative products and services. As investors and enthusiasts alike ponder the future value of Apple stock, particularly looking ahead to the next

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.