EUR/USD Could Correct Higher, USD/JPY is Facing Hurdles

EUR/USD Could Correct Higher, USD/JPY is Facing Hurdles

EUR/USD declined recently below the 1.1780 support, but it found support near 1.1730. USD/JPY is showing bearish signs below the key 105.50 resistance level.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro started a substantial decline below the 1.1800 and 1.1780 support levels.
  • There was a break below a key bullish trend line with support near 1.1765 on the hourly chart of EUR/USD.
  • USD/JPY started a fresh decline after it failed to clear the main 106.00 resistance zone.
  • There is a major bearish trend line forming with resistance near 105.50 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro climbed above the 1.1800 and 1.1820 levels against the US Dollar. However, the EUR/USD pair struggled to gain momentum and formed a short-term top near the 1.1830 level.

As a result, there was a downward move below the 1.1800 support level. The pair broke the 1.1780 support level and the 50 hourly simple moving average. Moreover, there was a break below a key bullish trend line with support near 1.1765 on the hourly chart of EUR/USD.

EUR/USD Technical Analysis Euro Dollar

The pair even broke the 1.1750 support and traded as low as 1.1730 on FXOpen. It is currently consolidating losses above the 1.1730 low. An initial resistance on the upside is near the 1.1750 level.

The 23.6% Fib retracement level of the downward move from the 1.1830 high to 1.1730 low is also near the 1.1754 level. The next major resistance on the upside is near the 1.1780 level.

The 50% Fib retracement level of the downward move from the 1.1830 high to 1.1730 low is near 1.1780 to act as a hurdle. More importantly, the 50 hourly simple moving average is aligned near 1.1790 and a connecting bearish trend line on the same chart.

Therefore, the pair is likely to face a lot of hurdles if it corrects higher towards 1.1780 and 1.1800. Conversely, EUR/USD could continue to move down below the 1.1730 low. The next major support is near the 1.1700 level, below which the pair could test the 1.1660 level.

USD/JPY Technical Analysis

The US Dollar struggled to clear the 106.20 resistance and started a fresh decline against the Japanese Yen. The USD/JPY pair broke the 105.80 support zone to move into a bearish zone.

There was a clear break below the key 105.50 support level and the 50 hourly simple moving average. It opened the doors for more downsides and the pair traded as low as 105.24. Recently, there was an upside correction, but the pair struggled to clear the 105.60 zone.

USD/JPY Technical Analysis US Dollar Yen

It resumed its decline and traded as low as 105.30. USD/JPY is currently correcting higher and trading above the 23.6% Fib retracement level of the recent decline from the 105.62 high to 105.30 low.

On the upside, there is a crucial resistance forming near 105.50. There is also a major bearish trend line forming with resistance near 105.50 on the hourly chart. The trend line is close to the 50% Fib retracement level of the recent decline from the 105.62 high to 105.30 low.

A successful break above the 105.50 and 105.60 resistance levels might open the doors for a fresh increase. The next major hurdle is near 106.00.

Conversely, USD/JPY might resume its decline below the 105.30 level. The next major support is near 105.00, followed by 104.80.

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Aayush Jindal
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