EUR / USD found support near 1.1665 and started an upward correction. The USD / JPY faces significant resistance near 109.85, followed by 110.00.
For important takeaways for EUR / USD and USD / JPY
· The euro started an upward correction above 1.1700 and 1.1720.
· There was a break above a key bearish trend line with a resistance near 1.1735 in the EUR / USD time chart.
· The USD / JPY started a new rise, but struggles to eliminate the 110.00 resistance.
· There is a significant uptrend line that is formed with a support close to 109.60 on the time chart.
EUR / USD technical analysis
Last week, the euro fell sharply below the 1,1800 against the US dollar. The EUR / USD pair broke the support zone 1.1750 to move to a bearish zone.
The pair settled below the 1.1750 level and the 50-hour simple moving average. It even broke the 1.1700 support level and traded up to 1.1663 on FXOpen. It is now being corrected above the 1.1700 resistance level.
There was a break above the 50% decline level of the key drop fiber from 1.1804 high to 1.1663 low. There was also a break above a key bearish trend line with resistance near 1.1735 in the EUR / USD time chart.
The pair is now consolidating above 1.1730 and the simple moving average of 50 hours. An immediate resistance is approaching the level of 1.1760. The first key resistance is near the 1.1770 level. It is close to 76.4% of the key Fib kickback level from the 1.1804 swing high to 1.1663 low.
The main resistance is near the 1.1800 level. A close above 1.1800 could open the doors for a steady rise towards 1.1850. If there are no interruptions above 1.1760, the pair may continue to fall below 1.1720.
An intermediate support is near the 1.1700 level. The next major support is near the 1.1665 level, below which the pair could fall towards the 1.1600 support in the short term.
USD / JPY technical analysis
The US dollar began a further rise above the 109.80 resistance against the Japanese yen. The USD / JPY pair broke the 110.00 area, but there was no bullish continuation.
The last oscillation formed around 110.14 before the pair corrected below. There was a fall below the 109.80 level and the 50-hour simple moving average. A low is formed near 109.41 and now the pair is increasing.
It surpassed the 50% decline in fiber in the recent decline, from a high of 110.14 to a low of 109.41. On the upside, an initial resistance is approaching the level of 109.85.
The next big resistance is near the 110.00 level or 76.4% Fib decline from the recent drop from the 110.14 high to the 109.41 low, above which it is likely that the pair will steadily increase in the coming sessions.
Initial support for the advantage is close to the 109.75 level. There is also a major uptrend line that is formed with a support close to 109.60 on the time chart.
If there is a bearish break below the trend line, the pair could decline to 109.40. Any further loss could open the doors to advance to the 109.00 support zone. The next key support could be 108.80.
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