EUR/JPY Forecast – Can Euro Hold This Support Vs Japanese Yen?

EUR/JPY Forecast – Can Euro Hold This Support Vs Japanese Yen?

  • – The Euro failed to move above the 128.50 resistance and declined against the Japanese Yen.
  • – There is a major bearish trend line formed with resistance at 128.00 on the hourly chart of EUR/JPY.
  • – Today in Japan, the Retail Trade report for May 2018 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was below the market forecast of +0.9% as there was a rise in the trade by 0.6% (YoY).

 

Japan’s Retail Trade

Today in Japan, the Retail Trade report for May 2018 was released by the Ministry of Economy, Trade and Industry. The market was looking for a rise of around 0.9% in the trade in May 2018, compared with the same month a year ago.

 

However, the actual result was below the market forecast of +0.9% as there was a rise in the trade by 0.6%. Looking at the monthly change, there was a decline of 1.7%, which was a lot more than the last market forecast of -0.9%. It disappointing when compared to the last increase of 1.4%.

 

The EUR/JPY pair is currently holding the 127.15 support, but it remains at a risk of a downside break as long as it is below 128.00.

 

EUR/JPY Technical Analysis

The Euro declined moved above the 128.50 resistance recently against the Japanese Yen, but it failed to hold gains. The EUR/JPY pair started a fresh downside wave and broke the 128.00, 127.50 support levels to settle below the 100 hourly simple moving average.

 

EUR/JPY Technical Analysis Euro Japanese Yen

 

The pair traded tested an important support area above 127.00 near 127.15. Buyers managed to protect more declines and the pair is currently recovering towards the 23.6% Fib retracement level of the last decline from the 128.83 high to 127.13 low.

 

However, there are many resistances above the 127.50 level. There is also a major bearish trend line formed with resistance at 128.00 on the hourly chart of EUR/JPY. The same trend line at 128.00 is close to the 100 hourly simple moving average.

 

Moreover, the 50% Fib retracement level of the last decline from the 128.83 high to 127.13 low is near 127.95 to protect gains. Therefore, if the pair fails to move above 127.80 and 128.00, it could decline further below 127.15 in the near term.


Also published on Medium.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry