EUR/JPY Forecast – Can Euro Hold This Vs Japanese Yen?

EUR/JPY Forecast – Can Euro Hold This Vs Japanese Yen?

  • – The Euro declined recently, but found support near 132.00 against the Japanese Yen.
  • – There is a major bullish trend line forming with support near 132.10 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Labor Cash Earnings report for Sep 2017 was released by the Ministry of Health, Labour and Welfare.
  • – The outcome was above the forecast of +0.5%, as there was an increase of 0.9% in the Labor Cash Earnings (YoY).

 

Japan’s Labor Cash Earnings

Today in Japan, the Labor Cash Earnings report for Sep 2017 was released by the Ministry of Health, Labour and Welfare. The market was positioned for a rise of 0.5% compared with the same month a year ago.

 

However, the actual result was above the forecast of +0.5%, as there was an increase of 0.9% in the Labor Cash Earnings in Sep 2017. On the other hand, the last reading was revised down from 0.7% to 0.9%.

 

Later today, the Euro Zone’s retail sales figure for Sep 2017 will be released. An increase of more than 1% in sales (MoM) could help the Euro and EUR/JPY pair in gaining momentum in the near term.

 

EUR/JPY Technical Analysis

The Euro failed to break an important resistance area near 133.10-133.12 against the Japanese Yen and started a downside move. The EUR/JPY pair declined and broke a few important supports like 132.40-50 and also settled below the 100 hourly simple moving average.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair traded towards 132.00 where buyers appeared. Moreover, a major bullish trend line with support near 132.10 on the hourly chart also protected further losses. It is currently recovering and trading near the 23.6% Fib retracement level of the last decline from the 133.12 high to 131.99 low.

 

On the upside, there is a major resistance near the 132.40 level followed by the 50% Fib retracement level of the last decline from the 133.12 high to 131.99 low at 132.56. The 100 hourly simple moving average is also at 132.65 to act as a resistance.

 

Therefore, the pair might correct higher, but it will most likely face heavy sell offers near the 132.50 and 132.60 levels.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry