EUR/JPY Forecast – Euro Remains Supported Near 112.40 Vs Yen

EUR/JPY Forecast – Euro Remains Supported Near 112.40 Vs Yen

  • – The Euro after moving as high as 123.30 against the Japanese yen started a correction.
  • – The EUR/JPY pair is currently moving down, but may find support near 122.40 and a triangle lower trend line on the 4-hours chart.
  • – Today, the Spanish Gross Domestic Product released by the National Institute of Statistics posted a growth of 3% in Q4 2016, compared with Q4 2015.

 

Spanish GDP

Today in the Euro Zone, the Spanish Gross Domestic Product report was released by the National Institute of Statistics. The market was aligned for the total value of all goods and services produced by Spain to increase by 3% in Q4 2016, compared with Q4 2015.

 

The result was in line with the forecast, as the Spanish GDP grew by 3%. In terms of the quarterly change, the Spanish Gross Domestic Product grew 0.7% in Q4 2016, which was again in line with the forecast. Later, Greece Retail Sales figure was released by the National Statistics Service. It posted an increase of 3.6% in Nov 2016, compared with Nov 2015. It was way better than the last revised increase of 2.6%.

 

The results were positive, but it looks like the market sentiment is not favoring gains in EUR/JPY at the moment, and it may extend its current decline towards the 122.40 where it is likely to find support.

 

EUR/JPY Technical Analysis

The Euro moved higher this past week and traded close to the 123.30 resistance area against the Japanese yen. Later, the EUR/JPY pair started a correction, and moved down below 123.00. The pair also settled below the 23.6% Fib retracement level of the last leg from the 121.12 low to 123.30 high.

 

EUR/JPY Technical Analysis Euro yen

 

The pair is moving down, but it is likely to find support near 122.40, as there is a contracting triangle pattern formed on the 4-hours chart. Its lower trend line might act as a support at 122.40-122.20.

 

Moreover, the 50% Fib retracement level of the last leg from the 121.12 low to 123.30 high might come into play as a support. Lastly, the 100 simple moving average on the same chart is at 122.08. So, if the pair continues to move down, it is likely to find support for a bounce back.

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