EUR/USD followed a strong bullish path above the 1.1200 pivot area and climbed towards 1.1500. USD/JPY is currently recovering higher, but it is facing hurdles near 106.00.
Important Takeaways for EUR/USD and USD/JPY
- The Euro climbed to a new monthly high at 1.1494 and it is currently correcting lower.
- There is a key bearish trend line forming with resistance near 1.1325 on the hourly chart of EUR/USD.
- USD/JPY started a decent upward move after it found support near the 101.20 area.
- There is a key bearish trend line forming with resistance near 105.55 on the hourly chart.
EUR/USD Technical Analysis
In the past few days, the Euro started a steady increase above the 1.1200 and 1.1300 resistance levels against the US Dollar. As a result, the EUR/USD pair even broke the 1.1420 resistance area.
Moreover, there was a break above the 1.1450 level and the pair traded as high as 1.1494 on FXOpen. The pair made a couple of attempts to break the 1.1490 and 1.1500 levels, but it failed.
The last swing high was formed near 1.1478 and the pair recently declined below the 50 hourly simple moving average. The decline was such that the pair spiked below 1.1350 and traded as low as 1.1275.
It is now climbing higher and trading above the 1.1300 level. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 1.1478 high to 1.1275 low.
Moreover, there is a key bearish trend line forming with resistance near 1.1325 on the hourly chart of EUR/USD. A clear break above the trend line could lead EUR/USD towards the 1.1375 resistance area.
The 50 hourly simple moving average is positioned near 1.1375 along with the 50% Fib retracement level of the recent decline from the 1.1478 high to 1.1275 low.
Therefore, a clear break above the 1.1375 resistance zone won’t be easy. If the pair succeeds, it could climb back towards the 1.1450 and 1.1475 levels. On the downside, the main supports are near 1.1275.
USD/JPY Technical Analysis
The US Dollar declined heavily after it failed to clear the 109.00 zone against the Japanese Yen. The USD/JPY pair broke many key supports near 108.00 to move into a bearish zone.
The pair tumbled below 106.00 and 105.00. It traded as low as 101.18 and it is currently correcting higher. There was a break above the 103.50 resistance and the 50 hourly simple moving average.
However, the previous support near the 106.00 area is now acting as a strong barrier for the bulls. Moreover, there is a key bearish trend line forming with resistance near 105.55 on the hourly chart.
The pair is currently testing the 23.6% Fib retracement level of the upward move from the 101.18 low to 105.91 high. If the pair fails to stay above the 104.35 support area, it could continue to move down.
The next key support is near the 103.55 level. It coincides with the 50% Fib retracement level of the upward move from the 101.18 low to 105.91 high.
Any further losses may perhaps lead the pair towards the 102.50 and 102.20 support levels. On the other hand, the USD/JPY pair might manage to climb above the 105.80 and 106.00 resistance levels to start a strong increase in the near term.