EUR/JPY Forecast – Euro Eyes Further Gains Vs Japanese Yen
- – The Euro traded higher and gained pace above the 130.50 level against the Japanese Yen.
- – There are two major bullish trend lines forming with support at 130.10 and 129.80 on the hourly chart of EUR/JPY.
- – Today in the Euro Zone, the Italian Business Confidence for August 2017 was released by the Istat.
- – The outcome was above the forecast, as there was an increase in the index from the last revised reading of 107.8 to 108.1.
Italian Business Confidence
Today in the Euro Zone, the Italian Business Confidence for August 2017 was released by the Istat. The market was positioned for a rise from the last reading of 107.7 to 108.0.
However, the actual result was above the forecast, as there was an increase in the index from the last revised reading of 107.8 to 108.1. The Consumer Confidence also posted a solid increase to 110.8 from the last revised reading of 106.9, whereas the market was only looking for 106.9. The report added that:
All components improved: economic, personal, current and future (from 123.1 to 128.1, from 101.6 to 105.6, from 106.3 to 109.3 and from 108.4 to 114.0, respectively). The balance concerning expectations on unemployment lowered from 37.1 to 32.3.
Overall, the EUR/JPY pair is likely to resume its uptrend and may soon retest the 130.70 level in the near term.
EUR/JPY Technical Analysis
The Euro surged higher recently above 129.50 against the Japanese Yen. The EUR/JPY pair gained traction and was able to break the 130.00 and 130.50 resistance level to post a new short-term high at 130.70.
Later, the pair started a correction and traded below the 23.6% Fib retracement level of the last wave from the 129.10 low to 130.70 high. On the downside, there are two major bullish trend lines forming with support at 130.10 and 129.80 on the hourly chart of EUR/JPY.
The pair recently tested the first trend line and the 50% Fib retracement level of the last wave from the 129.10 low to 130.70 high, and found support.
The pair is once again moving higher and likely to gather bids above the 130.40 level to challenge the 130.70 swing high. Overall, buying dips in the short term towards 130.00 or 129.80 can be considered with a tight stop.
