The EUR/USD pair is recovering from the 1.1450 level. The USD/JPY pair is correcting its gains from the 160.50 level and may decline further below the 158.00 level.
Important tips for analyzing the EUR/USD and USD/JPY pairs today
- The Euro struggled to stay in positive territory and fell below 1.1600 before finding support.
- There is a major bearish trend line forming with resistance at 1.1575 on the hourly chart of the EUR/USD pair at FXOpen.
- The USD/JPY pair rose significantly before bears emerged near 160.45.
- There is a major bearish trend line forming with resistance near 159.20 on the hourly chart of FXOpen.
Technical analysis of the EUR/USD pair
On the hourly chart of EUR/USD at FXOpen, the pair started a new decline from 1.1640. The euro fell below 1.1600 and 1.1520 against the US dollar.
The pair also fell below the 1.1500 level and the 50-hour simple moving average. Finally, the price tested the 1.1445 area. The bottom has been formed at 1.1443, and the pair is now recovering from its losses. There was a move above the 1.1500 level and the 50 hourly simple moving average.
The pair crossed the 50% Fibonacci retracement level of the downward movement from the high of 1.1639 to the low of 1.1443. On the upside, the pair is now facing resistance near the 61.8% Fibonacci retracement levels and 1.1575 level. There is also a major downtrend line forming with the resistance level at 1.1575.
The first major hurdle for the bulls could be 1.1605. A bullish break above 1.1605 may set the tone for the rally again. In the aforementioned case, the pair may rise towards the 1.1640 level.
If not, the pair may fall again. Immediate support is located near 1.1520. The next major area of interest could be 1.1480 or the 50 hourly simple moving average. If a downside breakout occurs below 1.1480, the pair could fall towards 1.1445. The main target for bears on the EUR/USD chart could be 1.1400, below which the pair could start a significant decline.
Technical analysis of the USD/JPY pair
On the hourly chart of the USD/JPY pair at FXOpen, the pair started a steady decline from well above the 160.00 area. The US dollar gained bearish momentum below the 159.50 level against the Japanese yen.
The pair also settled below the 159.00 level and the 50-hour simple moving average. The bottom was formed at 158.44, and the pair is now consolidating its losses. On the downside, the first major support is located near 158.45.
The next key area for bulls could be 158.00. If there is a close below 158.00, the pair could decline steadily. In the mentioned case, the pair may decline towards the 156.80 level. Any further losses may send the pair towards the 155.00 level.
Immediate resistance on the USD/JPY chart is located near the 23.6% Fibonacci retracement level of the downward move from the 160.46 high to the 158.44 low at 158.90.
If there is a close above 158.90 and the hourly RSI moves above 50, the pair could rise towards 159.20. There is also a major downtrend line forming with resistance near 159.20. The next major barrier for the bulls could be near the 50% Fibonacci retracement level at 159.45, above which the pair could test 160.00 in the coming days.
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This article represents the opinion of companies operating under the FXOpen brand only. It should not be construed as an offer, solicitation or recommendation regarding products and services offered by companies operating under the FXOpen brand, nor should it be considered financial advice.
