US Dollar Price Action Settings: EUR/USD and USD/JPY Dividends -by Ecork

Talking points about the US dollar:

  • The US dollar jumped to a new 19-year high overnight, buoyed by the EUR/USD crash below the 1.0500 level.
  • EUR/USD held at 1.0500 for 10 days, then finally pulled back at 11y. The momentum on the breakout will likely be supported by the catalytic stops and the question now is whether the sellers will continue to move. The five-year low is a bit lower on the chart, and this 1.0500 level of former support becomes potential resistance.
  • The USD/JPY pair started to decline, testing through the trend line that held the lowest levels during the April trading.
  • The analysis in the article is based on price movement And chart formations. To learn more about price action or chart patterns, check out DailyFX Education Section.

at 11y Today, break…

EUR/USD held at 1.0500 for 10 days and yesterday, You have highlighted the potential for pullbacks in EUR/USD, USD/JPY and USD. It didn’t happen for the EUR/USD or the USD and it seems that a break of 1.0500 has triggered stops that added fuel to the fire as the pair dropped to a five-year low this morning.

The next support point is 1.0340 which was the lowest level in January of 2017.

EUR/USD daily price chart

The graph was prepared by James Stanley; EURUSD on Tradingview


It may be difficult to chase the short side of the euro. But, on the flip side, there’s no sign yet that the bears are over, so reversals can be similarly complex.

In the short term, there is a resistance potential around the previous short term fluctuation. The 1.0441 level is very close and this would be a solid place to plan. If sellers remain aggressive, this will be a point of interest. A little deeper, there is a little more context around 1.0469 which was a price swing in late April. Above that, the 1.0500 level is very much in sight as this has been support for more than two weeks before finally giving way.

EUR/USD 2-hour price chart

2-hour euro to US dollar price chart

The graph was prepared by James Stanley; EURUSD on Tradingview

US dollar / Japanese yen

On the other hand, the USD/JPY pair posted a bigger turnaround. As we saw yesterday, the trend line breakout has begun and this opens the door to a deeper downward movement. The Yen’s strength has faded overnight and the pair is now preparing for a new low.

The excitement here is the possibility of a continuation as those trends have continued in JPY weakness for quite some time and the current pullback is only a small part of that previous move. However, caution should still be exercised, and there is now a possibility of resistance at the former support, taken from around 128.71, and if that cannot hold, around 129.42.

Four-Hour USD/JPY Price Chart

usdjpy four hour price chart

The graph was prepared by James Stanley; US dollar / Japanese yen on Tradingview

— written by James StanleyAnd Senior strategist for

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