EUR/USD started a fresh increase above the 1.1800 resistance zone. USD/JPY is currently declining and it is likely to continue lower towards 103.75 or 103.20.
Important Takeaways for EUR/USD and USD/JPY
- The Euro started a strong upward move above the 1.1800 and 1.1820 levels.
- There is a key bullish trend line forming with support near 1.1855 on the hourly chart of EUR/USD.
- USD/JPY started a major decrease from well above the 105.00 support level.
- There is a short-term contracting triangle forming with resistance near 104.15 on the hourly chart.
EUR/USD Technical Analysis
Recently, there was a steady upward move in the Euro from the 1.1750 support zone against the US Dollar. The EUR/USD pair climbed above the 1.1800 and 1.1820 resistance levels to move into a positive zone.
The pair even broke the 1.1850 resistance and settled above the 50 hourly simple moving average. It traded as high as 1.1893 on FXOpen before starting a downside correction.
There was a break below the 1.1880 level, but the pair remained well bid near the 1.1850 zone. A low is formed near 1.1851 and the pair is currently consolidating. An initial resistance is near the 1.1872 level. It is close to the 50% Fib retracement level of the recent decline from the 1.1893 high to 1.1851 low.
The first major resistance for the bulls is seen near the 1.1875 level. It coincides with the 61.8% Fib retracement level of the recent decline from the 1.1893 high to 1.1851 low.
Any further gains could open the doors for a push above the 1.1900 zone in the coming sessions. On the downside, there is a key bullish trend line forming with support near 1.1855 on the hourly chart of EUR/USD.
The trend line is close to the 50 hourly simple moving average, below which EUR/USD could start a downside extension towards the 1.1835 support. The main support is forming near the 1.1800 zone, below which there is a risk of a sharp decline towards the 1.1750 and 1.1740 levels in the near term.
USD/JPY Technical Analysis
The US Dollar topped near the 105.70 level and it started a fresh decline against the Japanese Yen. The USD/JPY pair broke the 105.00 support level to move into a bearish zone.
There was a clear break below the 104.80 support level and the pair settled below the 50 hourly simple moving average. The decline gained pace below the 50% Fib retracement level of the upward move from the 103.17 swing low to 105.68 swing high.
The pair is now consolidating losses near the 104.15 level. It seems like there is a short-term contracting triangle forming with resistance near 104.15 on the hourly chart.
If there is a downside break below the triangle support, the pair could dive towards the 103.75 level. It is close to the 76.4% Fib retracement level of the upward move from the 103.17 swing low to 105.68 swing high.
Any further losses may lead the price towards the 103.20 support zone. Conversely, USD/JPY might start a fresh increase above the 104.25 and 104.40 levels. The next major hurdle for the bulls is near the 104.80 level, above which the pair could rise towards the 105.40 level.
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