EURJPY Rebounds after Dipping post JPN Trade Balance Total
Aayush Jindal
Key Highlights
Euro declined heavily against the Japanese Yen during the past couple of sessions and traded below 138.50 before starting a recovery.
Japanese Merchandise Trade Balance Total released by the Ministry of Finance posted a trade deficit of ¥-216.0B in May 2015 whereas the market was expecting ¥-226.0B.
Japanese Imports of goods and services declined by 8.7%, more than the forecast of -7.5%.
Exports increased by 2.4%, which was also lower compared with the forecast of 3.5%.
EURJPY – Technical AnalysisThe EURJPY pair after trading close to 140.00 declined sharply and traded below 100 and 200 hourly simple moving average. However, the downside was stalled around a critical bullish trend line where buyers managed to protect further losses. The pair is currently moving back higher, but facing resistance around the 100 MA, which is sitting along with the 38.2% Fib retracement level of the last drop from the 139.98 high to 138.24 low.If buyers manage to break 100 MA, the next area of interest may be around 200 MA, which is aligned with the 61.8% Fib level. On the downside, the highlighted trend support area holds the key for more declines in the near term. Moreover, the 138.00 handle is also a major pivot area.Japanese Trade BalanceEarlier during the Asian session, the Japanese Merchandise Trade Balance Total, i.e. a measure of balance amount between import and export was released by the Ministry of Finance. The forecast was a trade deficit of ¥-226.0B in May 2015. However, the trade deficit was on a bit lower side with a reading of ¥-216.0B.Both imports and exports were on the lower side when compared with the market expectation. Imports of goods and services were lower by 8.7%, more than the forecast of -7.5%. Similarly, exports rose 2.4%, less than the forecast of a 3.5% gain. Overall, the outcome was mixed, but the Japanese Yen was seen gaining bids after the release, which created a minor pressure on the EURJPY pair.Euro Zone CPIIn the Euro Zone today, the CPI report will be released by the Eurostat. The forecast is +0.2% in May 2015, compared to the preceding month. If there is a decline or major miss in the Euro Zone CPI, the Euro might come under pressure in the short term.
If buyers manage to break 100 MA, the next area of interest may be around 200 MA, which is aligned with the 61.8% Fib level. On the downside, the highlighted trend support area holds the key for more declines in the near term. Moreover, the 138.00 handle is also a major pivot area.Japanese Trade BalanceEarlier during the Asian session, the Japanese Merchandise Trade Balance Total, i.e. a measure of balance amount between import and export was released by the Ministry of Finance. The forecast was a trade deficit of ¥-226.0B in May 2015. However, the trade deficit was on a bit lower side with a reading of ¥-216.0B.Both imports and exports were on the lower side when compared with the market expectation. Imports of goods and services were lower by 8.7%, more than the forecast of -7.5%. Similarly, exports rose 2.4%, less than the forecast of a 3.5% gain. Overall, the outcome was mixed, but the Japanese Yen was seen gaining bids after the release, which created a minor pressure on the EURJPY pair.Euro Zone CPIIn the Euro Zone today, the CPI report will be released by the Eurostat. The forecast is +0.2% in May 2015, compared to the preceding month. If there is a decline or major miss in the Euro Zone CPI, the Euro might come under pressure in the short term.
If buyers manage to break 100 MA, the next area of interest may be around 200 MA, which is aligned with the 61.8% Fib level. On the downside, the highlighted trend support area holds the key for more declines in the near term. Moreover, the 138.00 handle is also a major pivot area.Japanese Trade BalanceEarlier during the Asian session, the Japanese Merchandise Trade Balance Total, i.e. a measure of balance amount between import and export was released by the Ministry of Finance. The forecast was a trade deficit of ¥-226.0B in May 2015. However, the trade deficit was on a bit lower side with a reading of ¥-216.0B.Both imports and exports were on the lower side when compared with the market expectation. Imports of goods and services were lower by 8.7%, more than the forecast of -7.5%. Similarly, exports rose 2.4%, less than the forecast of a 3.5% gain. Overall, the outcome was mixed, but the Japanese Yen was seen gaining bids after the release, which created a minor pressure on the EURJPY pair.Euro Zone CPIIn the Euro Zone today, the CPI report will be released by the Eurostat. The forecast is +0.2% in May 2015, compared to the preceding month. If there is a decline or major miss in the Euro Zone CPI, the Euro might come under pressure in the short term.