Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction
EUR/USD is slowly gaining traction above the 1.0800 level. USD/JPY trimmed almost all losses and showing positive signs above 156.20.
Important Takeaways for EUR/USD and USD/JPY Analysis Today
· The Euro started a decent increase above the 1.0750 pivot level.
· There is a key bullish trend line forming with support near 1.0800 on the hourly chart of EUR/USD at FXOpen.
· USD/JPY climbed higher above the 155.95 and 156.50 levels.
· There is a connecting bullish trend line forming with support near 156.20 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 1.0725 zone. The Euro cleared a few key hurdles near 1.0750 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 1.0830 and the pair is now consolidating gains. Immediate support is near the 23.6% Fib retracement level of the upward move from the 1.0775 swing low to the 1.0827 high at 1.0815.
The first major support on the EUR/USD chart is near 1.0800. There is also key bullish trend line forming with support near 1.0800 and the 50% Fib retracement level of the upward move from the 1.0775 swing low to the 1.0827 high.
The next key support is at 1.0790. If there is a downside break below 1.0790, the pair could drop toward 1.0750. The next support is near 1.0725, below which the pair could start a major decline.
On the upside, the pair is now facing resistance near the 1.0830 zone. The next major resistance is near 1.0850. An upside break above 1.0850 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 decent increase from the 155.25 zone. The US Dollar gained bullish momentum above 155.95 against the Japanese Yen.
It settled above the 50-hour simple moving average and 156.20. A high was formed near 156.78 and the pair is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the 155.68 swing low to the 156.78 high.
On the downside, the first major support is near the trend line at 156.20 and the 50-hour simple moving average. The trend line is close to the 50% Fib retracement level of the upward move from the 155.68 swing low to the 156.78 high.
The next major support is near 155.95. If there is a close below 155.95, the pair could decline steadily toward 155.25. In the stated case, the pair might drop toward 154.80. The next major support sits at 154.20.
Immediate resistance on the USD/JPY chart is near 156.50. The first major resistance is near 156.80. If there is a close above the 156.80 level and the RSI moves above 60, the pair could rise toward 157.50. The next major resistance is near 158.00, above which the pair could test 160.00 in the coming days.
Read more: https://fxopen.com/blog/en/oa-market-analysis-eur-usd-sees-green-as-usd-jpy-gains-bullish-traction/
Text source: Forex Trading Blog
