EUR/JPY Forecast – Can Euro Recover Above 128.50 Vs Japanese Yen?

EUR/JPY Forecast – Can Euro Recover Above 128.50 Vs Japanese Yen?

  • – The Euro remained in a downtrend and it recently traded close to the 127.00 level against the Japanese Yen.
  • – There is a major expanding triangle forming with current resistance at 128.30 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Corporate Service Price Index (CSPI) for April 2018 was released by the Bank of Japan.
  • – The outcome was above the market forecast of +0.6% as there was a rise in the CSPI by 0.9% (YoY).

 

Japan’s Corporate Service Price Index

Today in Japan, Corporate Service Price Index (CSPI) for April 2018 was released by the Bank of Japan. The market was looking for a rise of around 0.6% in the index in April 2018, compared with the same month a year ago.

 

However, the actual result was above the market forecast of +0.6% as there was a rise in the CSPI by 0.9%. This was also above the increase of 0.5%. Moreover, the Services Producer Price Index excluding International transportation climbed around 0.8% from the previous year.

 

The EUR/JPY pair is currently correcting higher, but it won’t be easy for buyers to break the 128.30 and 128.50 resistance levels.

 

EUR/JPY Technical Analysis

The Euro declined and remained in a major downtrend from the 131.40 resistance against the Japanese Yen. The EUR/JPY pair broke a few important support levels such as 131.00, 130.00 and 129.00 to settle below the 100 hourly simple moving average.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair traded close to the 127.00 level and a low was formed at 127.14. Later, an upside correction was initiated and the pair moved above the 23.6% Fib retracement level of the last decline from the 131.34 high to 127.14 low.

 

The pair is currently testing a major expanding triangle with current resistance at 128.30 on the hourly chart. A break above the triangle resistance, followed by a break above 128.50 is needed for more gains in the near term.

 

The next hurdle above 128.50 is near the 50% Fib retracement level of the last decline from the 131.34 high to 127.14 low at 129.24. On the downside, supports are at 127.80 and 127.50.


Also published on Medium.

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