EUR/USD is breaking above a Bull flag pattern in a 1 Hour Chart. This pattern has the potential to take the price towards 1.21500 and 1.22000. But first, the flag high at 1.20809 must be surpassed. Next resistance is at 1.20920 and 1.21000, which presents an area of resistance that can slow the current rally. Bull flags are continuation patterns and the presence of one on the chart suggests that the trend is strong and should continue. At the very least it is not a reason to sell out of any long trades.
That being said, should the pattern fail and price action consolidate further or break lower, support can be found at 1.20251 with the 50-hour moving average. Below this stands the 1.20000 level that is becoming stronger due to the presence of the 100-hour MA. Major trend line support can be found at 1.19607, which is reinforced by the 200-hour MA.
EURUSD 1 Hour Chart
The USD/JPY pair has seen price hold above 112.000, once again confirming this area as a strong support level. The recent highs around 113.674 point to this area being a ceiling for the price. So, with the range established, the price has formed a triangular consolidation pattern just above the range floor. Moving averages in the 1 Hour pattern support this view. Price is currently close to the 100-hour MA, which is flatlining at 112.600. Further support can be found at the 50-hour MA at 112.500 and the red supporting two touch trend line at 112.310.
Resistance is present at the 200-hour MA, which is just below the triangle top line at 112.740. This trend line has three touches and should offer a good level to gauge price action against if it is tested. The next resistance above the trend line is 112.828, followed by 113.000 and 113.114.
USDJPY 1 Hour Chart