Market Analysis: EUR/USD Jumps, USD/JPY Bulls Seem Unstoppable
EUR/USD is climbing higher above the 1.0800 level. USD/JPY surged above the 160.00 and 161.40 resistance levels.
Important Takeaways for EUR/USD and USD/JPY Analysis Today
- The Euro started a decent increase above the 1.0780 pivot level.
- There is a key bullish trend line forming with support near 1.0820 on the hourly chart of EUR/USD at FXOpen.
- USD/JPY climbed higher above the 160.50 and 161.40 levels.
- There is a connecting bullish trend line forming with support near 161.55 on the hourly chart at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.0710 zone. The Euro cleared a few key hurdles near 1.0780 to move into a positive zone against the US Dollar.
The pair settled above the 1.0800 level and the 50-hour simple moving average. A high was formed at 1.0845 and the pair is now consolidating gains. There was a test of the 23.6% Fib retracement level of the upward move from the 1.0710 swing low to the 1.0845 high.
However, the bulls are active above the 1.0800 zone. Immediate support is near a key bullish trend line at 1.0820. The first major support on the EUR/USD chart is near 1.0820.
The next key support is near the 50% Fib retracement level of the upward move from the 1.0710 swing low to the 1.0845 high at 1.0780. If there is a downside break below 1.0780, the pair could drop toward 1.0740. The next support is near 1.0710, below which the pair could start a major decline.
On the upside, the pair is now facing resistance near the 1.0845 zone. The next major resistance is near 1.0880. An upside break above 1.0880 could set the pace for another increase. In the stated case, the pair might rise toward 1.0920.
USD/JPY Technical Analysis
On the hourly chart of USD/JPY at FXOpen, the pair started a major increase from the 160.25 zone. The US Dollar gained bullish momentum above 160.80 against the Japanese Yen.
It settled above the 50-hour simple moving average and 161.40. The upward move was such that the pair cleared the 61.8% Fib retracement level of the last key decline from the 161.95 swing high to the 160.25 low.
The current price action is positive, and the pair seems to be consolidating above the 76.4% Fib retracement level of the last key decline from the 161.95 swing high to the 160.25 low, suggesting more upsides.
Immediate resistance on the USD/JPY chart is near 161.80. The first major resistance is near 161.95. If there is a close above the 161.95 level and the RSI moves above 60, the pair could rise toward 162.50.
The next major resistance is near 163.20, above which the pair could test 165.00 in the coming days. On the downside, the first major support is near the trend line at 161.55. The next major support is near the 161.40 pivot level.
If there is a close below the 50-hour simple moving average and 161.40, the pair could decline steadily toward 160.25. In the stated case, the pair might drop toward 158.80. The next major support sits at 156.50.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-jumps-usd-jpy-bulls-seem-unstoppable/
Text source: Forex Trading Blog
