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

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

  • – The Euro declined recently and traded below the 132.50 support against the Japanese Yen.
  • – There is a major bearish trend line forming with resistance near 132.45 on the hourly chart of EUR/JPY.
  • – Today in Japan, the All Industry Activity Index for Sep 2017 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was below the forecast of -0.4%, as there was a decline of 0.5% in the index (MoM).

 

Japan’s All Industry Activity Index

Today in Japan, the All Industry Activity Index for Sep 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a decline of 0.4% in the index compared with the previous month.

 

However, the actual result was below the forecast of -0.4%, as there was a decline of 0.5% in the index. It was also well below the last increase of 0.1%. The Indices of Construction Industry Activity was down by 2.3% in Sep 2017, and the Indices of Industrial Production was down by 1%.

 

EUR/JPY Technical Analysis

The Euro started a major downside move from the 133.88 swing high against the Japanese Yen. The EUR/JPY pair declined and broke a couple of important support levels such as 132.60 and 132.00. It even traded below the 131.50 support and the 100 hourly simple moving average.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair traded as low as 131.17 and later started an upside correction. It has moved above the 23.6% Fib retracement level of the last decline from the 133.88 high to 131.17 low. However, the broken support near 132.40-50 is now acting as a resistance. There is also a major bearish trend line forming with resistance near 132.45 on the hourly chart of EUR/JPY.

 

Moreover, the 50% Fib retracement level of the last decline from the 133.88 high to 131.17 low is near 132.55 and the 100 hourly SMA. Therefore, there are many resistances on the upside for EUR/JPY and it won’t be easy for the pair to move past 132.60.

 

In the short term, selling rallies can be opted near 132.45 and 132.60 as long as there is break and close above the 100 hourly SMA.


Also published on Medium.

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