Market Analysis: EUR/USD Eyes Recovery While USD/JPY Corrects Lower

<img src="https://images.unsplash.com/photo-1621280336935-ed7cae618aac?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDF8fGV1cnxlbnwwfHx8fDE2OTI3ODQ4ODZ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: EUR/USD Eyes Recovery While USD/JPY Corrects Lower" /><p><em>EUR/USD started a fresh decline from 1.0930. USD/JPY is correcting gains and might test the 144.90 support in the near term.</em></p><h2>Important Takeaways for EUR/USD and USD/JPY Analysis Today</h2><p>· The Euro started a fresh decline below the 1.0880 support.</p><p>· There was a break below a key bullish trend line with support at 1.0890 on the hourly chart of EUR/USD at FXOpen.</p><p>· USD/JPY struggled near 146.40 and recently started a downside correction.</p><p>· There is a major bearish trend line forming with resistance near 145.85 on the hourly chart at FXOpen.</p><h2>EUR/USD Technical Analysis</h2><p>On the hourly chart of EUR/USD at FXOpen, the pair started a fresh decline from the 1.0930 zone. The Euro declined below the 1.0910 support zone to enter a bearish zone against the US Dollar as mentioned in the <a href="https://fxopen.com/blog/en/aj-market-analysis-eur-usd-extends-losses-while-usd-chf-eyes-upside-break/">previous analysis</a>.</p><p>There was a break below a key bullish trend line with support at 1.0890. The pair even settled below the 1.0880 zone and the 50-hour simple moving average. A low is formed near 1.0832 and the pair is now correcting losses above the 23.6% Fib retracement level of the recent decline from the 1.0930 swing high to the 1.0832 low.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/eurusd–17-.png" alt="Market Analysis: EUR/USD Eyes Recovery While USD/JPY Corrects Lower" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/eurusd–17-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/eurusd–17-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/eurusd–17-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/eurusd–17-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>On the upside, the pair is now facing resistance near the 50-hour simple moving average at 1.0880. It is close to the 50% Fib retracement level of the recent decline from the 1.0930 swing high to the 1.0832 low.</p><p>The next major resistance is near 1.0910. The main resistance is still near 1.0930. An upside break above 1.0930 could set the pace for another increase. In the stated case, the pair might rise toward 1.1000.</p><p>If not, the pair might resume its decline. The first major support on the EUR/USD chart is near 1.0830. The next key support is near 1.0800. If there is a downside break below 1.0800, the pair could drop toward 1.0765. The next support is near 1.0750, below which the pair could start a major decline.</p><h2>USD/JPY Technical Analysis</h2><p>On the hourly chart of USD/JPY at FXOpen, the pair started a decent increase from the 145.00 zone. The US Dollar gained bullish momentum above 145.50 against the Japanese Yen.</p><p>The pair even climbed above 146.00 before the bears appeared near 146.40. As a result, the pair started a downside correction below the 50-hour simple moving average and 143.00. There was a move below the 50% Fib retracement level of the upward move from the 144.92 swing low to the 146.40 high.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/08/usdjpy–7-.png" alt="Market Analysis: EUR/USD Eyes Recovery While USD/JPY Corrects Lower" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/08/usdjpy–7-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/08/usdjpy–7-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/08/usdjpy–7-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/08/usdjpy–7-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Besides, there is a major bearish trend line forming with resistance near 145.85. On the downside, the first major support is near the 61.8% Fib retracement level of the upward move from the 144.92 swing low to the 146.40 high at 145.50.</p><p>A downside break below the 145.50 support might spark strong bearish moves. The next major support is near 144.90. If there is a close below 144.90, the pair could decline steadily.</p><p>In the stated case, the pair might drop toward 144.20. The next stop for the bears may perhaps be near the 143.50 zone. Immediate resistance on the USD/JPY chart is near the 50-hour simple moving average and the trend line at 145.85.</p><p>If there is a close above the 145.85 level and RSI moves above 50, the pair could rise toward 146.05. The next major resistance is near 146.40, above which the pair could test 148.00 in the coming days.</p>