EUR to USD and USD to JPY Technical Analysis: Post-Christmas Market Trends
The foreign exchange market, post-Christmas, witnessed notable movements in the EUR/USD and USD/JPY pairs. Let’s delve into the technical analysis for a comprehensive overview.
EUR/USD Technical Analysis
The Euro continued its bullish trajectory, surging above the crucial 1.0985 resistance level. A noteworthy development is the formation of a key bullish trend line, providing crucial support around 1.1020.
Current Status
EUR/USD successfully breached the 1.1020 resistance, accompanied by the 50-hour simple moving average. Testing the 1.1040 resistance level, the pair formed a high near 1.1044, followed by a consolidation phase.
Potential Corrections
In case of a downside correction, the pair might test the 23.6% Fib retracement level, marked at 1.1020. The presence of a vital bullish trend line at 1.1020, coupled with the 50-hour simple moving average, adds to the support. Further support lies near the 50% Fib retracement level at 1.0985.
Upside Resistance
On the upside, resistance is apparent near 1.1040, with a subsequent major hurdle around the 1.1065 level. An upward breakthrough could set the stage for further gains, targeting 1.1120.
USD/JPY Technical Analysis
Market Movement
On the USD/JPY front, the pair initiated a robust decline above the 143.50 zone, indicating bearish momentum. The breach below the critical 142.85 support level and the 50-hour simple moving average emphasizes the prevailing bearish sentiment.
Recovery Attempt
After breaking the 142.20 pivot level, USD/JPY reached a low of 141.88, followed by a recovery attempt. A significant aspect is the breakthrough of a major bearish trend line, accompanied by the 50-hour simple moving average.
Immediate Resistance
Immediate resistance for USD/JPY stands near 142.85, with the first major hurdle at the 50% Fib retracement level. Successful closure above 143.40, coupled with the hourly RSI moving above 60, could pave the way for a rise toward 144.50.
Downside Potential
On the downside, initial support is evident near 141.85, followed by a more significant level at 141.45. A close below 141.45 might trigger a steady decline, with a potential downside targeting the 140.00 support.
Both EUR/USD and USD/JPY exhibit distinct trends post-Christmas. Traders are advised to closely monitor the outlined support and resistance levels for informed decision-making. This analysis is an opinion and not financial advice. Independent financial decisions are recommended.
