Market Analysis: EUR/USD Dives, USD/JPY Remains In Strong Uptrend
EUR/USD declined from the 1.0880 resistance and corrected gains. USD/JPY is rising and might gain pace above the 153.85 resistance.
Important Takeaways for EUR/USD and USD/JPY Analysis Today
· The Euro started a fresh decline below the 1.0850 support zone.
· There was a break below a connecting bullish trend line with support at 1.0805 on the hourly chart of EUR/USD at FXOpen.
· USD/JPY climbed higher above the 150.50 and 152.20 levels.
· There was a break above a key contracting triangle with resistance at 152.00 on the hourly chart at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD at FXOpen, the pair struggled to clear the 1.0880 resistance zone. The Euro started a fresh decline and traded below the 1.0850 support zone against the US Dollar.
The pair declined below 1.0820 and tested the 1.0760 zone. A low was formed near 1.0761 and the pair recently attempted a recovery wave. There was a minor recovery wave above the 1.0800 level. However, the bears were active near 1.0840 and the pair started another decline.
There was a move below the 1.0820 level. The pair declined below the 50% Fib retracement level of the recovery wave from the 1.0761 swing low to the 1.0839 high.
Besides, there was a break below a connecting bullish trend line with support at 1.0805. The pair is now trading below 1.0800 and the 50-hour simple moving average.
On the upside, the pair is now facing resistance near the 1.0805 level. The next key resistance is at 1.0840. The main resistance is near the 1.0870 level. A clear move above the 1.0870 level could send the pair toward the 1.0950 resistance.
An upside break above 1.0950 could set the pace for another increase. In the stated case, the pair might rise toward 1.0980. If not, the pair might resume its decline. The first major support on the EUR/USD chart is near 1.0780 and the 76.4% Fib retracement level of the recovery wave from the 1.0761 swing low to the 1.0839 high.
The next key support is at 1.0760. If there is a downside break below 1.0760, the pair could drop toward 1.0720. The next support is near 1.0650, below which the pair could start a major decline.
USD/JPY Technical Analysis
On the hourly chart of USD/JPY at FXOpen, the pair started a fresh upward move from the 149.00 zone. The US Dollar gained bullish momentum above 150.50 against the Japanese Yen.
It even cleared the 50-hour simple moving average and 152.00. There was a break above a key contracting triangle with resistance at 152.00. The pair climbed above 153.50 and traded as high as 153.88.
It is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 151.45 swing low to the 153.88 high.
The current price action above the 153.20 level is positive. Immediate resistance on the USD/JPY chart is near 153.85. The first major resistance is near 154.20. If there is a close above the 154.20 level and the RSI moves above 65, the pair could rise toward 155.00.
The next major resistance is near 155.85, above which the pair could test 157.00 in the coming days. On the downside, the first major support is 153.20, below which the bears could gain strength.
The next major support is visible near the 50% Fib retracement level of the upward move from the 151.45 swing low to the 153.88 high at 152.65. If there is a close below 152.65, the pair could decline steadily. In the stated case, the pair might drop toward the 152.20 support zone. The next stop for the bears may perhaps be near the 151.45 region.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-dives-usd-jpy-remains-in-strong-uptrend/
Text source: Forex Trading Blog
