EUR/USD Extending Decline While USD/JPY Could Grind Higher

FXOpen

EUR/USD is under pressure and it recently broke the 1.1120 support area. USD/JPY is showing positive signs and it seems like there could be more upsides above 106.00.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro failed to break the 1.1150 resistance and declined recently below the 1.1120 support.
  • There is a major declining channel forming with resistance near 1.1105 on the hourly chart of EUR/USD.
  • USD/JPY is showing positive signs and is trading nicely above the 105.60 support area.
  • There is a key bearish trend line forming with resistance near 105.90 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro recovered above the 1.1120 and 1.1140 levels against the US Dollar. However, the EUR/USD pair failed to gain traction above the 1.1150 and 1.1160 levels. As a result, a fresh bearish wave was initiated below the 1.1140 level.

A swing high was formed near 1.1163 on FXOpen and the pair broke the key 1.1120 support level to move into a bearish zone. Moreover, there was a close below 1.1100 and the 50 hourly simple moving average.

EUR/USD Technical Analysis Euro US Dollar Chart

Moreover, there was a break below the 50% Fib retracement level of the upward move from the 1.1050 swing low to 1.1163 high. The price is now trading well below 1.1100 and the 50 hourly SMA.

There is also a major declining channel forming with resistance near 1.1105 on the hourly chart of EUR/USD. The pair needs to break the 1.1100 resistance, the channel resistance, and the 50 hourly simple moving average to start a decent recovery.

The next key resistance is near the 1.1120 level, above which the pair could trade towards the 1.1150 level. Conversely, the pair might continue to move down below 1.1085. An immediate support is near the 76.4% Fib retracement level of the upward move from the 1.1050 swing low to 1.1163 high.

If EUR/USD breaks the 1.1080 support, it could revisit the main 1.1050 support area in the coming sessions.

USD/JPY Technical Analysis

This past week, there was a sharp decline in the US Dollar below the 106.00 support against the Japanese Yen. The USD/JPY pair even broke the 105.20 support level and traded below 105.00.

It traded towards 104.50 and a swing low was formed near 104.45. Recently, the pair started a strong recovery and climbed above the 105.00 and 105.40 resistance levels. Moreover, there was a break above the 106.00 level and the 50 hourly simple moving average.

USD/JPY Technical Analysis US Dollar Japanese Yen Chart

However, the pair struggled to break the 106.40 level and recently corrected lower below 106.00 plus the 23.6% Fib retracement level of the last wave from the 104.45 low to 106.40 high.

At the moment, the 105.60 level is acting as a support and the pair is showing positive signs. On the upside, there is a key bearish trend line forming with resistance near 105.90 on the hourly chart.

If there is an upside break above 105.90 and 106.00, the pair could continue to move higher. The next key resistance is near the 106.20 and 106.40 levels.

Conversely, if the pair fails to climb above 106.00, it could trim gains. The main support on the downside is near the 105.40 level. It represents the 50% Fib retracement level of the last wave from the 104.45 low to 106.40 high. Moreover, the 105.25 level is also a crucial support zone.

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

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

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.