EUR/JPY Forecast – Euro Remains in Uptrend above 135.30 Vs Japanese Yen
- – The Euro is struggling to move above the $136.15-20 resistance area against the Japanese Yen.
- – There is a key bullish trend line forming with support at 135.60 on the hourly chart of EUR/JPY.
- – Today in Japan, the Nikkei Manufacturing PMI for January 2018 was released.
- – The outcome was above the forecast of 54.4 as there was a rise in the PMI to 54.8.
Japan’s Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for January 2018 was released. The market was positioned for no change in the PMI from 54.4 in Jan 2018.
However, the actual result was above the forecast of 54.4 as there was a rise in the PMI to 54.8. This is the third consecutive month of an increase in Japan’s Nikkei Manufacturing PMI. The report added:
The Japanese manufacturing sector gained further momentum at the start of 2018. Output and new order growth rates accelerated, while businesses raised employment amid rising backlogs of work. Robust demand also encouraged firms to pass on part of the sharp rise in cost burdens to customers.
The EUR/JPY pair is stable above the 135.30 and 135.00 support levels, but it has to clear sell offers near 136.15 to gain further momentum.
EUR/JPY Technical Analysis
The Euro remains in a decent uptrend above the 135.00 handle against the Japanese Yen. The EUR/JPY pair recently traded higher and tested an important resistance at 136.15-136.20. The mentioned 136.20 resistance is significant and it recently stopped an upside break on many occasions.
The pair failed to gain pace and started a downside correction. It moved below the 23.6% Fib retracement level of the last wave from the 134.12 low to 136.03 high.
However, the downside move was limited by 135.50 and a key bullish trend line with support at 135.60 on the hourly chart of EUR/JPY. The pair is well supported above the 135.50-60 levels. However, it has to move past 136.20 to further accelerate higher.
Once there is a proper close above 136.20, the pair could trade towards the 137.00 level in the near term. On the downside, below 135.50, the next major support is around the 135.00 handle.
Also published on Medium.
