EURJPY – Euro’s Weakness Is Here To Stay Vs Japanese Yen
Aayush Jindal
Key Highlights
The Euro made a downside move recently against the Japanese yen, and traded below the 121.00 support level.
The EURJPY pair also broke two bullish trend lines with support at 121.30 and 120.60 on the 4-hours chart.
Today in Japan, the Nikkei Manufacturing PMI for March 2017 (preliminary reading) posted a decline from 53.3 to 52.6.
Today, the Euro Zone Manufacturing PMI for March 2017 (preliminary reading) will released by the Markit Economics, which is forecasted to decline from 55.4 to 55.3.
EURJPY Technical Analysis
The Euro declined recently and settled below the 121.00 support area against the Japanese yen. The EURJPY pair is struggling and looks poised for more declines below 120.00.The downside move was initiated once the pair cleared the 23.6% Fib retracement level of the last wave from the 118.23 low to 122.88 high. Then, it broke two bullish trend lines with support at 121.30 and 120.60 on the 4-hours chart.Finally, there was a close below the 100 and 200 simple moving average (H4) at 120.55. The downside was such that the pair failed to hold the 50% Fib retracement level of the last wave from the 118.23 low to 122.88 high at 120.56.Overall, the pair may extend the decline and could even test the last swing low of 118.23.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for March 2017 (preliminary reading) was released. The market was positioned for a minor decline from the last reading of 53.3.However, the result was lower, as Nikkei Manufacturing PMI posted a decline from 53.3 to 52.6 in March 2017. It ignited a minor downside move in JPY vs EUR, but the EURJPY pair overall remains below a major resistance of 120.50. On the downside, the next crucial support is at 119.00.
Economic Releases to Watch Today
Euro Zone Manufacturing PMI for March 2017 (preliminary) – Forecast 55.3, versus 55.4 previous.
Germany’s Manufacturing PMI for March 2017 (preliminary) - Forecast 56.5, versus 56.8 previous.
France Manufacturing PMI for March 2017 (preliminary) – Forecast 52.4, versus 52.2 previous.
Canadian CPI (YoY) Feb 2017 – Forecast +2.1%, versus 2.1% previous.
US Manufacturing PMI for March 2017 (preliminary) – Forecast 54.8, versus 54.2 previous.
The downside move was initiated once the pair cleared the 23.6% Fib retracement level of the last wave from the 118.23 low to 122.88 high. Then, it broke two bullish trend lines with support at 121.30 and 120.60 on the 4-hours chart.Finally, there was a close below the 100 and 200 simple moving average (H4) at 120.55. The downside was such that the pair failed to hold the 50% Fib retracement level of the last wave from the 118.23 low to 122.88 high at 120.56.Overall, the pair may extend the decline and could even test the last swing low of 118.23.