EUR/USD started an upside correction after a strong decline below the 1.1800 area. USD/JPY is rising, but it is facing a major hurdle near the 111.70 level.
Important Takeaways for EUR/USD and USD/JPY
- The Euro traded as low as 1.0635 and it is currently correcting higher.
- There is a major bearish trend line forming with resistance near 1.0830 on the hourly chart of EUR/USD.
- USD/JPY remained in an uptrend and it climbed above the 111.00 resistance area.
- There is a key bullish trend line forming with support near 110.75 on the hourly chart.
EUR/USD Technical Analysis
In the past few days, the Euro started a nasty decline from well above the 1.1000 area against the US Dollar. The EUR/USD pair broke many supports near the 1.0800 level and the 50 hourly simple moving average to move further into a bearish zone.
The decline gained pace below the 1.0700 level and the pair traded as low as 1.0635 on FXOpen. It is currently correcting higher and trading above the 1.0750 level.
A high is formed near 1.0886 and the pair recently corrected gains. It traded below the 1.0820 level, plus the 23.6% Fib retracement level of the recent upward move from the 1.0635 low to 1.0886 high.
However, there are many key supports on the downside near the 1.0760 and 1.0750 levels. The 50 hourly simple moving average is also acting as a strong support near the 1.0760 level.
If there is a downside break below the 1.0750 support, the pair is likely to start a fresh decline. On the upside, there are a few hurdles forming near the 1.0830 and 1.0850 levels.
There is also a major bearish trend line forming with resistance near 1.0830 on the hourly chart of EUR/USD. If the pair climbs above the trend line and 1.0850, it could correct higher towards the 1.1000 resistance level in the near term.
USD/JPY Technical Analysis
The US Dollar remained well bid above the 108.00 pivot level against the Japanese Yen. The USD/JPY pair followed a bullish path and broke many key hurdles near the 110.00 resistance level.
Moreover, there was a close above the 110.50 level and the 50 hourly simple moving average. However, the pair seems to be facing a strong resistance near the 111.70 and 111.80 levels.
If there is a clear break above the 111.70 and 111.80 resistance levels, the pair is likely to accelerate higher. The next major resistance is near the 112.00 level, followed by 112.20.
Recently, the pair corrected lower below the 50% Fib retracement level of the upward move from the 110.08 low to 111.71 high. On the downside, the 110.70 area seems to be providing support.
There is also a key bullish trend line forming with support near the 110.75 area on the hourly chart. If there is a downside break below the trend line, and the 61.8% Fib retracement level of the upward move from the 110.08 low to 111.71 high, the pair could accelerate its losses below 110.50.
An immediate support is near the 110.10 level, below which USD/JPY may perhaps continue to move down towards the 109.50 and 109.40 support levels in the near term.