EUR/JPY Forecast – Euro to Start Downtrend Vs Japanese Yen?

EUR/JPY Forecast – Euro to Start Downtrend Vs Japanese Yen?

  • – The Euro is finding it hard to break the 133.80-90 resistance levels against the Japanese Yen.
  • – There was a break below a key bullish trend line with support at 133.70 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Domestic Corporate Goods Price Index for Nov 2017 was released by the Bank of Japan.
  • – The outcome was above the forecast of +0.2% as there was a rise in the index by 0.4% in Nov 2017 (MoM).

 

Japan’s Domestic Corporate Goods Price Index

Today in Japan, the Domestic Corporate Goods Price Index for Nov 2017 was released by the Bank of Japan. The market was positioned for a rise in the index by 0.2% in Nov 2017 compared with the previous month.

 

However, the actual result was above the forecast of +0.2% as there was a rise in the index by 0.4% in Nov 2017. It was also above the last increase of 0.3%. In terms of the yearly change, there was a rise in the index by 3.5% in Nov 2017, more than the forecast of 3.3% and better than the last +3.4%.

 

EUR/JPY Technical Analysis

The Euro traded nicely from the 132.20-30 support area against the Japanese Yen, and moved above the 133.00 handle. The EUR/JPY pair traded as high as 133.88 where it faced a strong resistance. The pair is currently struggling to retain the bullish bias above 133.80 and is currently moving lower.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair has already started a downside reaction and there was a break below a key bullish trend line with support at 133.70 on the hourly chart. At the moment, the pair is trading near the 23.6% Fib retracement level of the last wave from the 132.25 low to 133.88 high.

 

If the recent trend line break is real at 133.70, there are chances of more declines in EUR/JPY in the near term. The next major support is near 133.10 and the 100 hourly simple moving average. Moreover, the 50% Fib retracement level of the last wave from the 132.25 low to 133.88 high is also at 133.06.

 

Overall, there can be more downsides in EUR/JPY, but the 133.10-20 levels are major supports, which will most likely prevent sellers from taking control.


Also published on Medium.

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