EUR/USD Struggle Continues, USD/JPY Extends Rally

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EUR/USD started a fresh decline from well above 1.1350. USD/JPY started a major increase above the 115.00 and 115.50 resistance levels.

Important Takeaways for EUR/USD and USD/JPY

· The Euro failed to gain strength above the 1.1350 and 1.1380 resistance levels.

· There is a key bearish trend line forming with resistance near 1.1300 on the hourly chart of EUR/USD.

· USD/JPY started a fresh increase above the 115.00 resistance zone.

· There was a break above a major rising channel with resistance near 115.55 on the hourly chart.

EUR/USD Technical Analysis

Recently, the Euro failed to clear the 1.1385 zone against the US Dollar. The EUR/USD pair started a fresh decline and traded below the 1.1320 support zone.

The pair even broke the 1.1300 level and settled below the 50 hourly simple moving average. A low was formed near 1.1272 on FXOpen and the pair is now consolidating. An immediate resistance on the upside is near the 1.1300 level.

EUR/USD Hourly Chart

It is near the 23.6% Fib retracement level of the recent decline from the 1.1388 swing high to 1.1272 low. The next major resistance is near the 1.1305 level.

There is also a key bearish trend line forming with resistance near 1.1300 on the hourly chart of EUR/USD. The main resistance is near the 1.1320 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the 1.1388 swing high to 1.1272 low.

If there is no break above 1.1320, the pair might start a fresh decline. An immediate support is near the 1.1275. The next major support is near 1.1260, below which the pair could dive to 1.1220 in the near term.

USD/JPY Technical Analysis

The US Dollar formed a base above the 114.50 level against the Japanese Yen. The USD/JPY pair started a major increase above the 115.00 resistance level.

The pair even climbed above the 115.50 level and the 50 hourly simple moving average. There was also a break above a major rising channel with resistance near 115.55 on the hourly chart. The pair even surged above 116.00.

USD/JPY Hourly Chart

A high was formed near 116.33 and the pair is now correcting gains. There was a break below the 23.6% Fib retracement level of the upward move from the 114.97 swing low to 116.33 high.

On the upside, an initial resistance is near the 116.20 level. The next major resistance is near the 116.30, above which the pair is likely to rise steadily towards 116.80 in the coming sessions. Any more gains could send the pair towards the 117.50 level. If not, it could resume its decline below 115.90.

The next major support is near the 115.65 level or the broken channel trend line. It is near the 50% Fib retracement level of the upward move from the 114.97 swing low to 116.33 high.

Any more downsides might lead the pair towards the 115.00 support zone. If there is a downside break below the 115.00 support, the pair could decline towards the 114.50 level.

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.

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