EUR/JPY Forecast – Euro to Bounce Back Vs Japanese Yen?
- – The Euro started a downside move from the 133.25 swing high against the Japanese Yen.
- – There was a break below a key bullish trend line with support at 132.75 on the hourly chart of EUR/JPY.
- – Today in the Euro Zone, the German Import price index for Oct 2017 was released by Deutsche Bundesbank.
- – The outcome was around the forecast as there was a rise in the index by 0.6% in Oct 2017 (MoM).
German Import Price Index
Today in the Euro Zone, the German Import price index for Oct 2017 was released by Deutsche Bundesbank. The market was positioned for a rise in the index by 0.6% in Oct 2017 compared with the previous month.
However, the actual result was around the forecast as there was a rise in the index by 0.6% in Oct 2017. However, it was below the last increase of 0.9%. In terms of the yearly change, there was a rise in the index by 2.6% in Oct 2017, less than the last +3.0%.
EUR/JPY Technical Analysis
The Euro made a nice upside move and traded above the 133.00 level against the Japanese Yen. The EUR/JPY pair traded as high as 133.25 and later started a downside move. It traded below the 23.6% Fib retracement level of the last wave from the 131.22 low to 133.25 high.
During the downside, there was a break below a key bullish trend line with support at 132.75 on the hourly chart. The pair even traded below the 50% Fib retracement level of the last wave from the 131.22 low to 133.25 high. However, the downside move was prevented by the 132.10 support and the 100 hourly simple moving average.
The pair is currently recovering and it broke a bearish trend line at 132.25 on the same chart. It needs to gain momentum above the 132.50 level to recover further in the near term.
Overall, the pair might continue to move higher towards 132.50-60 as long as it is positioned above the 132.00 handle and the 100 hourly SMA. The next major resistance above 132.60 is at 132.85.
Also published on Medium.
