- – The Euro faced heavy offers above the 134.30 level against the Japanese Yen and started a downside move.
- – There was a break below two major bullish trend lines with support near 133.70 on the hourly chart of EUR/JPY.
- – Today in Japan, the Corporate Service Price Index (CSPI) for July 2017 was released by the Bank of Japan.
- – The outcome was above the forecast of +0.7%, as there was an increase of 0.8% in the index.
Japan’s Corporate Service Price Index
Today in Japan, the Corporate Service Price Index (CSPI) for July 2017 was released by the Bank of Japan. The market was positioned for a rise of 0.7% compared with the same month a year ago.
However, the actual result was above the forecast of +0.7%, as there was an increase of 0.8% in the index. Looking at the Corporate Services Producer Price Index for all items excluding International transportation, there was an increase of 0.7% in July 2017 compared with the same month a year ago.
Overall, the EUR/JPY pair under pressure and it is likely to decline further towards the 131.90-80 support levels.
EUR/JPY Technical Analysis
The Euro was in a nice uptrend this past week and moved above the 134.00 handle against the Japanese Yen. The EUR/JPY pair traded towards the 134.30-40 levels where it faced a key resistance, failed to break it and later started a downside move.
The downside move was strong, as the pair broke two major bullish trend lines with support near 133.70 on the hourly chart. There was also a close below the 133.00 handle and the 100 hourly simple moving average.
The pair traded as low as 131.91 and corrected towards the 23.6% Fib retracement level of the last decline from the 134.23 high to 131.91 low. The 132.40-50 levels are acting as a hurdle and preventing further recoveries.
The pair is again moving lower and likely to gain pace towards 132.00. It might even break the 132.00 support and trade towards the recent low of 131.91. A break of 131.91 could take the pair towards the 131.80 level.Tags: EUR/JPY, EUR/JPY Technical Analysis, Euro, Japanese Yen