EUR/USD is likely to start a steady increase if it clears the 1.1920 resistance zone. USD/JPY could extend its decline below the 110.40 support zone in the near term.
Important Takeaways for EUR/USD and USD/JPY
- The Euro is consolidating losses above the 1.1880 support zone.
- There is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD.
- USD/JPY declined below the 110.00 and 110.60 support levels.
- There is a major declining channel forming with resistance near 110.85 on the hourly chart.
EUR/USD Technical Analysis
After a close below 1.2000, the Euro saw bearish moves against the US Dollar. The EUR/USD pair even tested the 1.1850 support zone before starting a decent upward move.
The pair climbed above the 1.1900 resistance zone. It even broke 1.1950 and the 50 hourly simple moving average. However, the pair failed to clear the 1.2000 zone. A high was formed near 1.1974 on FXOpen and the pair corrected gains.
It tested the 1.1880 zone and it is now rising. There was a break above the 23.6% Fib retracement level of the recent decline from the 1.1974 high to 1.1877 low.
It is now facing resistance near the 1.1915 zone and the 50 hourly simple moving average. There is also a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD. The next key resistance is near the 1.1925 level.
The 50% Fib retracement level of the recent decline from the 1.1974 high to 1.1877 low is also near 1.1925. A close above 1.1915 and 1.1925 could open the doors for a steady increase.
An intermediate support is near the 1.1880 level. The next major support is near the 1.1850 level, below which the pair could drop towards the 1.1800 support.
USD/JPY Technical Analysis
The US Dollar started a fresh increase from the 109.70 zone against the Japanese Yen. The USD/JPY pair broke the 110.20 and 110.80 resistance levels.
The pair even spiked above 111.00, but there was no proper close. A high was formed near 111.11 before the pair started a fresh decline. There was a break below the 110.80 and 110.60 support levels.
The pair declined below the 23.6% Fib retracement level of the key upward move from the 109.71 low to 111.11 high. It is now trading near the 110.40 support zone.
There is also a major declining channel forming with resistance near 110.85 on the hourly chart. The channel support is near the 50% Fib retracement level of the key upward move from the 109.71 low to 111.11 high.
If there is a downside break below the channel support, the pair could start a major decline. The main support is near the 110.00 level. A downside break and close below 110.00 could open the doors for a larger decline. The next major support could be 109.50, followed by 109.40.
On the upside, an immediate resistance is near the 110.80 level and the 50 hourly simple moving average. The next major resistance is near the 111.00 level, above which the pair is likely to rise steadily in the coming sessions. In the stated case, the pair could test 111.40.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.