- The Euro managed to recover against the Japanese yen recently, but remain below a major resistance of 114.00.
- There is a monster bearish trend line formed on the 4-hours chart of EUR/JPY, which may stop the upside move.
- The German consumer price index released by the Statistiches Bundesamt Deutschland posted a rise of 0.3% in July 2016, just as the market expected.
Earlier during the London session, the Germany consumer price index figure was reported by the Statistiches Bundesamt Deutschland. The market was expecting the average price change for all goods and services purchased by households for consumption purposes to increase by 0.3% in July 2016, compared with the previous month.
The actual was as expected, as there was a rise of 0.3% in the CPI. In terms of the yearly change, the Germany consumer price index rose 0.4%, which was again in line with the market forecast.
EUR/JPY Pair Analysis
The EUR/JPY pair recently traded as low as 112.33 versus the Japanese yen where the Euro bulls appeared and defended the downside. The pair started recovering and traded above the 23.6% Fib retracement level of the last drop from the 116.91 high to 112.33 low.
No doubt, there are positive signs for the Euro at the moment. However, when I look at the 4-hours chart of the EUR/JPY pair, there is a monster bearish trend line. It can be seen as a resistance and act as a hurdle for more gains in EUR/JPY.
Tags: EUR/JPY, EUR/JPY Pair Analysis, Euro, Euro Zone, German CPI, Japanese Yen