EUR/USD declined towards 1.2000 before recovering higher. USD/JPY is following a strong uptrend and it even broke the 106.50 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

• The Euro tested the 1.2000 support zone and it is now recovering higher.
• There was a break above a steep bearish trend line with resistance near 1.2020 on the hourly chart of EUR/USD.
• USD/JPY climbed above the 106.00 and 106.50 resistance levels.
• There is a major bullish trend line forming with support at 106.70 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro topped near the 1.2245 before starting a fresh decline against the US Dollar. The EUR/USD pair broke the 1.2150 and 1.2120 support levels to move into a bearish zone.

The pair even broke the 1.2080 support level and the 50 hourly simple moving average. Finally, there was a spike below the 1.2000 support and the pair traded as low as 1.1991 on FXOpen.

Recently, the pair started an upside correction above 1.2020. There was a break above a steep bearish trend line with resistance near 1.2020 on the hourly chart of EUR/USD. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2245 swing high to 1.1991 low.

It is now trading above the 1.2060 level and the 50 hourly simple moving average. An immediate resistance is near the 1.2100 level.

The first key resistance is near the 1.2120 level. It is close to the 50% Fib retracement level of the downward move from the 1.2245 swing high to 1.1991 low. A clear break above the 1.2100 and 1.2120 levels could open the doors for a move towards the 1.2200 level.

Conversely, the pair could start a fresh decline below the 1.2060 support. The first major support is near the 1.2050 level and the 50 hourly simple moving average.

If there is a downside break below the 50 hourly simple moving average, the pair could dive towards the 1.2000 support in the near term. Any more losses might call for a retest of the 1.1965 support level.

USD/JPY Technical Analysis

The US Dollar started a strong increase above the 105.00 and 105.50 resistance levels against the Japanese Yen. The USD/JPY pair even cleared the 106.00 level to move into a positive zone.

It gained pace and climbed steadily above the 106.50 resistance. A high is formed near 106.95 and the pair settled nicely above the 50 hourly simple moving average. There was a minor downside correction below the 106.60 level.

The pair tested the 23.6% Fib retracement level of the upward move from the 105.84 swing low to 106.95 high. There is also a major bullish trend line forming with support at 106.70 on the hourly chart.

If there is a downside break below the trend line support, the pair could test the 106.40 level. It is close to the 50% Fib retracement level of the upward move from the 105.84 swing low to 106.95 high. Any more losses might call for a move towards 106.20.

Conversely, the pair might continue to rise above 106.80. The main resistance is near 107.00, above which the USD/JPY pair could accelerate higher towards the 107.50 level in the near term.

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