EUR/JPY Forecast – Euro To Retest 131.80 Vs Japanese Yen

EUR/JPY Forecast – Euro To Retest 131.80 Vs Japanese Yen

  • – The Euro is in a downtrend and is trading below the 132.80 support against the Japanese Yen.
  • – There was a break below a major bullish trend line with support near 132.85 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Industrial Production for August 2017 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was above the forecast of +2%, as there was an increase of 2.1% in the production (MoM).

 

Japan’s Industrial Production

Today in Japan, the Industrial Production for August 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a rise of 2% compared with the previous month.

 

However, the actual result was above the forecast of +2%, as there was an increase of 2.1% in the production. Looking at the yearly change, there was a rise of 5.3%, which was less than the last +5.4%. On the other hand, the Capacity Utilization posted an increase of 3.3% in August 2017, which was more than the last decline of 1.8%.

 

Overall, the EUR/JPY pair will most likely continue to move lower towards the last swing low of 131.85.

 

EUR/JPY Technical Analysis

The Euro after a decent rise above 133.00 against the Japanese Yen found sellers near 133.50. The EUR/JPY pair started a downside wave and broke a couple of important support levels such as 133.00 and 132.80.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

During the downside move, the pair also cleared a major bullish trend line with support near 132.85 on the hourly chart and the 100 hourly simple moving average. There was even a close below the 61.8% Fib retracement level of the last wave from the 131.85 low to 133.49 high.

 

At present, the pair is trading below the 132.25 support and the 76.4% Fib retracement level of the last wave from the 131.85 low to 133.49 high. Therefore, there are chances of more declines in the near term, probably towards the last swing low of 131.85.

 

On the upside, the broken support at 132.80 is now a major resistance along with the 100 hourly simple moving average.

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