- – The Euro moved down recently against the Japanese yen to settle below the 120.30 support.
- – During the downside, the EUR/JPY pair broke an ascending channel support at 120.0, which might now act as a resistance.
- – The German IFO business sentiment index released by the CESifo Group for March 2017 posted a rise from 111.1 (revised) to 112.3.
German IFO Business Sentiment Index
Today during the London session, the German IFO business sentiment index released by the CESifo Group for March 2017 was released. The market an unchanged reading from 111 in March 2017.
The outcome was on better than the forecast, as the German IFO business sentiment index posted a rise to 112.3 in March 2017. The last reading was also revised up from 111 to 111.1. The German IFO Current Assessment index also posted a nice increase from 118.4 to 119.3. Similarly, the IFO Expectations moved higher from the revised reading of 104.2 to 105.7 in March 2017. The report mentioned that the “business outlook for companies also improved again this month. The upswing in the German economy is gaining impetus”.
Overall, there is a chance of EUR/JPY moving higher towards 120.00 or 120.10, but it might face resistances near the stated levels.
EUR/JPY Technical Analysis
The Euro was under a lot of pressure, as it dived below 120.50 support against the Japanese yen. The EUR/JPY pair later extended declines below 120.00 and traded as low as 119.40. Then, a recovery was initiated, which failed near the 100 hourly simple moving average at 120.26, and the pair started a downside move.
During the downside move, the pair broke an ascending channel support at 120.0 for a move towards 119.60. It traded as low as 119.54 and currently correcting higher. It has moved above the 23.6% Fib retracement level of the last decline from the 120.26 high to 119.54 low.
However, it is likely to face sellers near the broken channel at 120.00. Moreover, the 50% Fib retracement level of the last decline from the 120.26 high to 119.54 low might also act as a hurdle on the upside. Last, but not the least, the most important resistance is still near the 100 hourly simple moving average at 120.20-102.30.Tags: EUR/JPY Technical Analysis, Euro, German IFO Business Climate Index, Japanese Yen