EUR/USD Nosedives, USD/JPY Aims More Upsides
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EUR/USD started a new decline against 1.0200 resistance. USD/JPY is on the rise and could break above the 138.00 resistance area.
Important takeaways EUR/USD and USD/JPY
· The euro started a new decline and even reached the support below 1,0000.
· Resistance occurred above the key bearish trendline near 0.9955 on the EUR/USD hourly chart.
· USD/JPY started another rally after breaking the 133.50 resistance area.
· There was a break above the descending trendline with resistance near 134.00 on the hourly chart.
EUR/USD Technical Analysis
Last week, the euro started a new decline well above the 1.0180 level against the US dollar. The EUR/USD pair fell below the 1.0150 and 1.0120 support levels.
The bears even pushed the pair below the 1.0050 level. There was near 1.0000 and the 50 hour simple moving average. The pair went as low as 0.9898 and recently started a small upward correction.
Above the 23.6% Fib retracement level, there was a move down from the 1.0203 swing high to 0.9898. There was also a break above an important downtrend line, with resistance near 0.9955 on the EUR/USD hourly chart.
However, the pair struggled to clear the 1.0000 resistance area and the 50-hour simple moving average. Immediate resistance above is near the 0.9970 level.
The next major resistance is near the 1.0000 level. A rise gap above 1.0000 could set the pace for a steady rise. In the mentioned case, the pair may return to 1.0050. It is close to the 50% Fib retracement level down the move from the 1.0203 swing high to 0.9898.
If not, the pair may drop and test the 0.9920 support. The next major support is near 0.9900, below which the pair may drop to 0.9850 in the near term.
USD/JPY Technical Analysis
The US dollar started a fresh rally from the 130.80 support area against the Japanese yen. The USD/JPY pair cleared the 132.20 and 133.00 resistance levels to move into positive territory.
It gained momentum near the 134.50 level and above the 50-hour simple moving average. There was also a break above a significant downtrend line with resistance near 134.00 on the hourly chart. The pair even rose above the 137.00 resistance area.
The peak was formed near 137.70 and the pair is now correcting lower. There was a rally below the 23.6% Fib retracement level from the swing high of 131.73 to the high of 137.70.
Initial support below is near the 135.50 level. The next major support is near the 134.70 level. It is near the 50% Fib retracement level on the upside from the 131.73 swing to 137.70 high.
Possible additional considerations may lead the pair towards the 133.50 support zone, below which the bears may aim for a test of the 132.00 support zone.
On the upside, initial resistance is near the 137.00 level. The next major resistance is near the 137.70 level. Further gains could send the pair towards the 138.50 level. The next key barrier is near the 140.00 level.
This forecast represents the opinion of FXOpen Markets Limited only and should not be construed as an offer, invitation or recommendation of FXOpen Markets Limited’s products and services or as financial advice.
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