EUR/JPY Forecast – Euro Eyes Further Gains Vs Japanese Yen
- – The Euro is positioned nicely in a bullish trend above 132.20 against the Japanese Yen.
- – There is a major bullish trend line forming with support at 132.20 on the hourly chart of EUR/JPY.
- – Today in Japan, the Merchandise Trade Balance Total for March 2018 was released by the Ministry of Finance.
- – The outcome was above the forecast of ¥498.3B as there was a trade surplus of ¥797.3B.
Japan’s Merchandise Trade Balance
Today in Japan, the Merchandise Trade Balance Total for March 2018 was released by the Ministry of Finance. The market was looking for a trade surplus of ¥498.3B in March 2018 compared with the last surplus of ¥3.4B.
However, the actual result was above the forecast of ¥498.3B as there was a trade surplus of ¥797.3B. The last reading was revised down from ¥3.4B to ¥2.6B. Imports of goods and services in March 2018 declined by 0.6%, whereas the market was looking for a rise of 5.4%. Exports of goods and services in March 2018 rose by 2.1%, whereas the market was looking for a rise of 4.7%.
The EUR/JPY pair is placed nicely above the 132.20-30 support area, and it looks set for more gains in the near term.
EUR/JPY Technical Analysis
The Euro followed a bullish path above the 132.00 level against the Japanese Yen. The EUR/JPY pair recently declined and tested the 132.10 level where it found support. The pair recovered, and moved back in the bullish zone above 132.20 and the 100 hourly simple moving average.
On the downside, there is a major bullish trend line forming with support at 132.20 on the hourly chart of EUR/JPY. The trend line acted as a support, pushed the pair above a bearish trend line with resistance at 132.52 on the same chart.
The pair traded as high as 132.80 recently and it seems like it may continue to rise towards the 133.00 and 133.20 resistance levels.
If there is a downside correction, then the 23.6% Fib retracement level of the last wave from the 132.10 low to 132.80 high at 132.64 may act as a support. However, the most important supports are at 132.40 and 132.20.
Also published on Medium.
