EUR/USD is trying to recover after finding support near 1.1450, while USD/JPY is retreating from recent peaks above 160.00 and may extend its decline towards lower levels.
Key Points
- The euro slipped below 1.1600 before stabilising and attempting a recovery.
- A bearish trend line is forming on EUR/USD, with resistance around 1.1575 on the hourly chart (FXOpen).
- USD/JPY rallied strongly but encountered selling pressure near 160.45.
- A downward trend line is also developing on USD/JPY, with resistance close to 159.20.
EUR/USD Technical Outlook
On the hourly chart, EUR/USD declined from the 1.1640 area, falling below 1.1600 and 1.1520 against the US dollar. The pair extended losses beneath 1.1500 and the 50-hour moving average, eventually testing the 1.1445 region. After forming a low at 1.1443, the pair began to recover.
The rebound pushed prices back above 1.1500 and the 50-hour moving average, and beyond the 50% Fibonacci retracement of the recent decline. However, resistance is now building near 1.1575, which aligns with both the 61.8% retracement level and a descending trend line.
A break above 1.1605 could strengthen bullish momentum and open the way towards 1.1640. On the downside, initial support lies around 1.1520, followed by 1.1480. A drop below 1.1480 may lead to a retest of 1.1445, while a deeper decline could expose the 1.1400 level.
USD/JPY Technical Outlook
USD/JPY has shifted into a corrective phase after peaking above 160.00. The pair declined below 159.50, gaining bearish momentum and moving under both 159.00 and the 50-hour moving average. A short-term low has formed at 158.44, with prices now consolidating.
Immediate support is seen near 158.45, followed by the key 158.00 level. A sustained move below 158.00 could accelerate losses towards 156.80, with further downside potentially extending to 155.00.
On the upside, initial resistance stands near 158.90 (23.6% Fibonacci retracement). If the pair breaks higher and RSI strengthens above 50, a move towards 159.20 becomes likely, where a bearish trend line may cap gains. Beyond that, 159.45 is the next key barrier, and a break above it could bring 160.00 back into focus.
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