EURJPY – Euro Looks To Extend Losses Vs Japanese Yen
Aayush Jindal
Key Highlights
The Euro recently failed near 122.80-123.00 against the Japanese yen, and moved down.
There was a connecting bearish trend line on the 4-hours chart of EURJPY at 122.65, which acted as a resistance.
The pair is also below the 100 and 200 simple moving average (H4), signaling more declines.
In the Euro Zone today, the Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics, which is forecasted to remain at 54.9 in Jan 2017 (preliminary).
EURJPY Technical Analysis
The Euro gained this past week against the Japanese yen to trade near 123.00. However, the EURJPY pair later found offers, traded lower, and now looks set for more declines.The failure in EURJPY was around a bearish trend line on the 4-hours chart at 122.65. Moreover, the 76.4% fib retracement level of the last decline from the 123.72 high to 120.54 low also acted as a hurdle.The pair moved down, and also closed below the 100 and 200 simple moving average (H4). It is not a good sign, and if the pair fails to recover, there are chances of more declines in the short term towards 121.00.There is also a major bearish trend line on the upside around 123.00-123.20, which may act as another barrier if the pair manages to break the first bearish trend line. Overall, the pair remains below a couple of important resistances like 122.80, 123.00 and 123.20.
Euro Zone Manufacturing PMI
Today in the Euro Zone, there are a few key releases like the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector. It will be published by the Markit Economics, and is forecasted to remain at 54.9 in Jan 2017 (preliminary).The Euro Zone Services Purchasing Managers Index (PMI) will also be published for Jan 2017 (preliminary), and is aligned for a minor rise from the last reading of 53.7 to 53.8.
US Manufacturing PMI
The US will also see the release of the Manufacturing Purchasing Managers Index (PMI) by the Markit Economics. It is forecasted to increase from the last reading of 54.3 to 54.5 in Jan 2017 (preliminary).Overall, the market will mainly focus on manufacturing numbers. Any major deviation in the preliminary readings might spark moves in the pairs like EURUSD, EURJPY, GBPUSD and AUDUSD.
The failure in EURJPY was around a bearish trend line on the 4-hours chart at 122.65. Moreover, the 76.4% fib retracement level of the last decline from the 123.72 high to 120.54 low also acted as a hurdle.The pair moved down, and also closed below the 100 and 200 simple moving average (H4). It is not a good sign, and if the pair fails to recover, there are chances of more declines in the short term towards 121.00.There is also a major bearish trend line on the upside around 123.00-123.20, which may act as another barrier if the pair manages to break the first bearish trend line. Overall, the pair remains below a couple of important resistances like 122.80, 123.00 and 123.20.