Euro Moved Lower and Eyes CPI Report For Next Move
Aayush Jindal
Key Highlights
Euro moved lower against a basket of currencies, including the Japanese Yen and looks set for more losses in the near term.
Japanese National Consumer Price Index released by the Statistics Bureau posted an increase of 0.4% in June 2015, lower when compared with the last rise of 0.5%.
Japanese Unemployment Rate which comes from the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau rose from 3.3% to 3.4%.
Today, the Euro Zone CPI will be released by the Eurostat, which is forecasted to increase by 0.2% in July 2015.
Japanese CPIEarlier during the Asian session, the Japanese National Consumer Price Index, which is a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services was released by the Statistics Bureau. The outcome was not encouraging, as the CPI increased by 0.4% in June 2015, compared with the same month a year ago. It was on the lower side when compared with the last gain of 0.5%. The Tokyo Consumer Price Index was also disappointing, as it came in at 0.2%.The highlight was the Unemployment Rate, which measures the percentage of unemployed in Japan and comes from the Ministry of Health, Labour and welfare, published by the Japan Statistics Bureau. There was an increase in the Unemployment Rate in June from 3.3% to 3.4%.EURJPY Technical AnalysisThe EURJPY pair struggled this week to maintain gains, and traded lower. There were a couple of support trend lines on the hourly chart, which were breached to clear the way for more downsides in the near term. One important bearish point to note is the fact that the pair is now trading below the 100 and 200 hourly simple moving averages.The pair already made an attempt to correct higher, but failed around the broken trend line and the 23.6% Fib retracement level of the last drop from the 136.94 high to 135.53 low. In short, we might assume that the pair completed a correction and could be heading lower in the near term.On the downside, the next support area may be around 135.00-10, followed by the all-important 134.80.
The pair already made an attempt to correct higher, but failed around the broken trend line and the 23.6% Fib retracement level of the last drop from the 136.94 high to 135.53 low. In short, we might assume that the pair completed a correction and could be heading lower in the near term.On the downside, the next support area may be around 135.00-10, followed by the all-important 134.80.
The pair already made an attempt to correct higher, but failed around the broken trend line and the 23.6% Fib retracement level of the last drop from the 136.94 high to 135.53 low. In short, we might assume that the pair completed a correction and could be heading lower in the near term.On the downside, the next support area may be around 135.00-10, followed by the all-important 134.80.