EUR/JPY Forecast – Euro to Break Past 136.00 Vs Japanese Yen?

EUR/JPY Forecast – Euro to Break Past 136.00 Vs Japanese Yen?

  • – The Euro is gaining pace above the 135.00 level against the Japanese Yen.
  • – There is a major bullish trend line forming with support at 135.50 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Machinery New orders figure for Nov 2017 was released by the Cabinet Office.
  • – The outcome was above the forecast of -1.4% as there was a rise in orders by 5.7% (MoM).

 

Japan’s Machinery New Orders

Today in Japan, the Machinery New orders figure for Nov 2017 was released by the Cabinet Office. The market was positioned for a decline of 1.4% in orders in Nov 2017 compared with the previous month.

 

However, the actual result was above the forecast of -1.4% as there was a rise in orders by 5.7%. Looking at the yearly change, there was an increase of 4.1% in the Machinery New orders, which was a lot better than the forecast of -0.7%. It was even better than the last reading of 2.3%.

 

The EUR/JPY pair remains in an uptrend and it is very likely to break the 136.00 resistance area for more gains in the near term.

 

EUR/JPY Technical Analysis

The Euro started an upside wave from the 133.00 swing low against the Japanese Yen. The EUR/JPY pair traded higher and was able to move above the 134.50 and 135.00 resistance levels. It even traded a few pips above the 136.00 level and settled above the 100 hourly simple moving average.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair formed a high at 136.09 from where it corrected lower towards 135.00. A low was formed at 134.97 from where a fresh upside wave was initiated. The pair is now above the 50% Fib retracement level of the last decline from the 136.09 high to 134.97 low.

 

On the downside, there is a major bullish trend line forming with support at 135.50 on the hourly chart of EUR/JPY. The trend line support at 135.50 is a decent buy zone in the short term.

 

On the upside, the pair is likely to break the 136.00 level and the 136.09 high for more gains. Above 136.09, the pair could accelerate toward the 136.50 level.


Also published on Medium.

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