- – The Euro after struggling to break the 123.65 resistance against the Japanese Yen moved down.
- – The EUR/JPY pair is approaching a major support trend line at 123.00 formed on the hourly chart.
- – Today in the Euro Zone, the Spanish Industrial Output March 2017 (YoY) released by the National Institute of Statistics posted a rise of 0.4%, less than the forecast of 1.6%.
Spanish Industrial Output
Today in the Euro Zone, the Spanish Industrial Output March 2017 (YoY) was released by the National Institute of Statistics. The market was positioned for the Industrial Output to increase by 1.6% in March 2017, compared with the same month a year ago.
However, the result was below the market forecast, as the Industrial Output posted an increase of 0.4%. When we look at the monthly change in the Industrial Production Index (IPI) between March and February, then there was a decline of 0.4% in March 2017. The report stated that “By sectors, Durable consumer goods (1.9%), Non-durable consumer goods (0.5%). Equipment goods (0.2%) have positive monthly rates. Conversely, Energy (-3.1%) and Intermediate goods (-0.2%) have monthly rates Negative.
Overall, the result was not as the market expected, which may weigh on EUR/JPY for a move towards 123.05-00 in the near term.
EUR/JPY Technical Analysis
The Euro was in a nice uptrend, as it moved above the 122.80 resistance against the Japanese Yen. The EUR/JPY pair traded towards 123.65 where it faced a lot of offers, resulting in a downside move below the 123.50 level.
The pair started moving down, and broke the 23.6% Fib retracement level of the last wave from the 122.60 low to 123.65 high. The pair also moved below the 123.30 support area, and may soon test a major support trend line at 123.00 formed on the hourly chart.
The same trend line also coincides with a horizontal support, and the 61.8% Fib retracement level of the last wave from the 122.60 low to 123.65 high. So, it is very likely that if the pair moves towards 123.10-00, it may find support and start trading back towards the 123.50 level. Only a break and close below 123.00 could ignite more losses.Tags: EUR/JPY Technical Analysis, Euro, Japanese Yen