EURJPY - Euro Trend Overwhelmingly Negative Vs Japanese Yen
Aayush Jindal
Key Highlights
The Euro is in a slow and steady downtrend against the Japanese yen with resistance at 119.60.
There is a crucial bearish trend line with resistance 119.50 formed on the 4-hours chart of EURJPY.
Today, the Euro Zone Retail Sales figure for Feb 2017 (MoM) will be released by the Eurostat, which is forecasted to increase by 0.5%.
Today, the Japanese Monetary Base for March 2017 (YoY) released by the Bank of Japan posted a rise of 20.3%.
EURJPY Technical Analysis
The Euro was under pressure vs the Japanese yen since it declined by more than 500 pips during the past few weeks. The EURJPY may continue to head lower and could test 117.00.During the downside move, the pair broke a major support area at 120.00 and 120.20. And, the pair was also above to move below the 100 simple moving average (H4) at 120.50. The pair recently traded as low as 117.84, and looking to correct higher.On the upside, there is a crucial bearish trend line with resistance 119.50 formed on the 4-hours chart. An initial resistance is at 23.6% Fib retracement level of the last drop from the 120.44 high to 117.84 low at 118.45. Above it, the 119.00 and 119.20 levels may act as a hurdle.
Japanese Monetary Base
Today in Japan, the Monetary Base for March 2017 (YoY) was released by the Bank of Japan. The market was expecting the currency supplied by the BoJ to rise by more than 15% in March 2017, compared with the same month a year ago.However, the result was positive, as there was a rise of 20.3%, which lifted the market sentiment for the Japanese yen.
Australian Trade Balance
Today in Australia, the trade balance for Feb 2017 was released by the Australian Bureau of Statistics. The market was expecting the difference in the value of its imports and exports to post a surplus of 1,800M in Feb 2017, compared with the last 1,302M.The outcome was above the forecast, as the trade surplus was 3,574M in Feb 2017. The report highlighted that in “seasonally adjusted terms, goods and services credits rose $469m (1%) to $32,405m. Non-monetary gold rose $352m (33%) and non-rural goods rose $236m (1%). Rural goods fell $195m (5%). Net exports of goods under merchanting remained steady at $41m. Services credits rose $76m (1%)”.
During the downside move, the pair broke a major support area at 120.00 and 120.20. And, the pair was also above to move below the 100 simple moving average (H4) at 120.50. The pair recently traded as low as 117.84, and looking to correct higher.On the upside, there is a crucial bearish trend line with resistance 119.50 formed on the 4-hours chart. An initial resistance is at 23.6% Fib retracement level of the last drop from the 120.44 high to 117.84 low at 118.45. Above it, the 119.00 and 119.20 levels may act as a hurdle.
The outcome was above the forecast, as the trade surplus was 3,574M in Feb 2017. The report highlighted that in “seasonally adjusted terms, goods and services credits rose $469m (1%) to $32,405m. Non-monetary gold rose $352m (33%) and non-rural goods rose $236m (1%). Rural goods fell $195m (5%). Net exports of goods under merchanting remained steady at $41m. Services credits rose $76m (1%)”.