EURJPY – Euro Sighting Gains Vs Japanese Yen Towards 124.0023 December, 2016 by Aayush Jindal in Market Analysis
- The Euro moved higher against the Japanese yen after testing the 121.50-60 support.
- The EURJPY pair recovered, and broke a couple of bearish trend line on the 4-hours chart at 122.50 and 122.65 for further gains.
- Today, the German GfK Consumer Confidence will be released, which is forecasted to remain at 9.8 in Jan 2016.
- Any above the forecast reading may help the EURJPY in gaining traction in the short term.
EURJPY Technical Analysis
The Euro after trading towards 121.60 against the Japanese yen recovered. At the moment, it looks like the EURJPY pair is looking for more gains in the near term towards 124.00.
During the recent upside move, the pair managed to break a couple of important resistances at 122.50 and 122.65. The pair broke a couple of bearish trend line on the 4-hours chart around the stated levels to initiate an upside move.
Moreover, the pair also cleared the 38.2% Fib retracement level of the last leg down from the 124.09 high to 121.68 low. One important point to note that the recent reversal was initiated just above the 100 simple moving average (H4). So, there is a high probability that the recent upside break may trigger more gains in the short term.
The next major barrier for the Euro buyers in that cast would be around the 124.00 handle.
German GfK Consumer Confidence
There are no major economic releases in the Euro Zone today. The only one release will be the German GfK Consumer Confidence. It is forecasted to remain at 9.8 in Jan 2016. If the result exceeds the forecast, there is a chance of EURJPY moving towards 124.00.
ECB Economic Bulletin
Recently, the Economic Bulletin by the ECB was published. The main highlight of the report were:
- Global activity has improved in the second half of the year and is expected to continue strengthening, although remaining below its pre-crisis pace.
- The economic recovery in the euro area is continuing.
- The euro area foresee annual real GDP increasing by 1.7% in 2016 and 2017, and by 1.6% in 2018 and 2019.
Overall, the Euro was boosted, and if the current sentiment remains intact, there can be more gains in EURJPY.