The Euro recently corrected lower towards the 129.00 support against the Japanese Yen.
There are two important bullish trend lines with support at 129.00 forming on the 4-hours chart.
Recently in the Euro Zone, the ZEW Economic Sentiment for July 2017 was released, which a minor decline from 37.7 to 35.6.
Today’s main event is in the US, i.e. the Housing Starts figure for June 2017 (MoM). Forecast 1.250M, versus the 1.288M previous.
EURJPY Technical Analysis
After topping at 130.80, the Euro corrected lower against the Japanese Yen. The EUR/JPY pair is currently trading above 129.00, which must hold for a bounce back.Looking at the 4 hours chart, there are two important bullish trend lines with support at 129.00. These trend lines hold a lot of importance for the current trend above 128.50 and the 100 simple moving average (H4).On the upside, a break above the 61.8% Fib retracement level of the last decline from the 130.76 high to 128.48 low is needed for a retest of 130.50. The H4 RSI is now above 55 for EUR/JPY signaling bullish trend resumption.
Euro Zone ZEW Economic Sentiment
Recently in the Euro Zone, the ZEW Economic Sentiment for July 2017 was released. The market was positioned for a minor decline from the last reading of 37.7 to 37.2.However, the result was disappointing, as ZEW Economic Sentiment for the Euro Zone declined to 35.6. Similarly, the German ZEW Economic Sentiment declined from 18.6 to 17.5 in July 2017.Commenting on July’s report, ZEW President Professor Achim Wambach, PhD, stated:
Our overall assessment of the economic development in Germany remains unchanged compared to the previous month. The outlook for the German economic growth in the coming six months continues to be positive. This is now also reflected in the survey results for the Eurozone.
Overall, the Euro remains supported near 129.00, and might continue to move higher in the near term.
Economic Releases to Watch Today
Euro Zone Construction Output May 2017 (YoY) – Forecast +3.1%, versus +3.2% previous.
Euro Zone Construction Output May 2017 (MoM) – Forecast 0.2%, versus +0.3% previous.
US Housing Starts June 2017 (MoM) – Forecast 1.250M, versus 1.288M previous.
US Building Permits June 2017 (MoM) – Forecast 1.250M, versus 1.216M previous.
Canada’s Manufacturing Shipment May 2017 (MoM) - Forecast +0.8%, versus +1.1% previous.
Looking at the 4 hours chart, there are two important bullish trend lines with support at 129.00. These trend lines hold a lot of importance for the current trend above 128.50 and the 100 simple moving average (H4).On the upside, a break above the 61.8% Fib retracement level of the last decline from the 130.76 high to 128.48 low is needed for a retest of 130.50. The H4 RSI is now above 55 for EUR/JPY signaling bullish trend resumption.
Commenting on July’s report, ZEW President Professor Achim Wambach, PhD, stated: