EUR/JPY – Can Euro Move Above 124.50 Vs Japanese Yen?
Aayush Jindal
Key Highlights
The Euro this week struggled to break a crucial resistance near 124.60 against the Japanese Yen, and moved down.
A bearish trend line at 124.60 on the 4-hours chart of EUR/JPY prevented upsides, and pushed the pair down.
Today in the Euro Zone, the Consumer Confidence for June 2017 (preliminary) will be released, which is forecasted to increase from -3.3 to -3.0.
Today, the foreign investment in Japan stocks figure (June 16, 2017) came in at ¥-331.6B, down from the last ¥-142.5B (revised).
EURJPY Technical Analysis
The Euro made a short-term top near 124.60 against the Japanese Yen this week. The EUR/JPY pair is currently trading lower, but might attempt another a retest of the 124.50-60 resistance.Looking at the 4-hours chart of EUR/JPY, there is a key bearish trend line at 124.50-60. It recently acted as a hurdle for more gains and pushed the pair lower towards 123.65.The pair is currently holding the 100 simple moving average (H4) at 123.85, and may correct higher towards the trend line resistance. However, upsides remain limited near 124.40-60.On the downside, the 100 SMA and the 38.2% Fib retracement level of the last wave from the 122.39 low to 124.64 high are a major support. Only a break and close below 123.60 might call for further declines may be towards 123.00.
Foreign Investment in Japan Stocks
Today, the foreign investment in Japan stocks figure (June 16, 2017) was released by Ministry of Finance.The result was mixed, as the investment amount was ¥-331.6B. The last reading was revised to ¥-142.5B from ¥-143.1B. Moreover, the foreign bond investment came in at ¥1,090.1B, more than the last revised reading of ¥534.1B.
Economic Releases to Watch Today
Swiss Trade Balance for May 2017 – Forecast 1,5M, versus 1,968M previous.
France Business Climate for June 2017 - Forecast 109, versus 109 previous.
UK’s CBI Industrial Trends Orders Survey Index for June 2017 - Forecast 7, versus 9 previous.
US Initial Jobless Claims - Forecast 240K, versus 237K previous.
Euro Zone Consumer Confidence for June 2017 (Preliminary) – Forecast -3, versus -3.3 previous.
Canadian Retail Sales April 2017 (MoM) – Forecast 0.2%, versus +0.7% previous.
Canadian Retail Sales ex Autos April 2017 (MoM) – Forecast +0.7%, versus -0.2% previous.
Looking at the 4-hours chart of EUR/JPY, there is a key bearish trend line at 124.50-60. It recently acted as a hurdle for more gains and pushed the pair lower towards 123.65.The pair is currently holding the 100 simple moving average (H4) at 123.85, and may correct higher towards the trend line resistance. However, upsides remain limited near 124.40-60.On the downside, the 100 SMA and the 38.2% Fib retracement level of the last wave from the 122.39 low to 124.64 high are a major support. Only a break and close below 123.60 might call for further declines may be towards 123.00.