EURJPY – Can Euro Continue Higher Vs Japanese Yen?11 November, 2016 by Aayush Jindal in EURJPY, Fundamental Analysis, Market Analysis, Technical Analysis
EURJPY – Can Euro Continue Higher Vs Japanese Yen?
- The Euro recently broke a major resistance area at 115.90-116.00 against the Japanese yen.
- There is a bullish trend line formed on the hourly chart of EURJPY, which is acting act as a support along with 116.00.
- Today, the Japanese Domestic Corporate Goods Price Index released by the Bank of Japan posted a decline of 0.1% in Oct 2016, compared with the forecast of -0.1%.
- Later today, the Germany consumer price index will be released by the Statistiches Bundesamt Deutschland, which is forecasted to increase by 0.2%.
EURJPY Technical Analysis
The Euro traded higher recently versus the Japanese to close above 116.00. The EURJPY is currently trading with a bullish bias, and may continue to trade higher in the short term.
There is a major bullish trend line formed on the hourly chart, which recently was tested by the Euro sellers. They were successful in breaking the trend line, but failed to close the pair below it. As a result, EURJPY is now back with a positive tone.
As long as the 115.90-116.00 support area is intact on the downside, the pair remains supported, and may trade higher in the short term.
Japanese Domestic Corporate Goods Price Index
Today in Japan, the Domestic Corporate Goods Price Index, which is a measure of prices for goods purchased by domestic corporates was released by the Bank of Japan. The market was aligned for the decline of 0.1% in Oct 2016, compared with the previous month.
The outcome was as forecasted, as there was a decrease of 0.1%. When we consider the yearly change, the Domestic Corporate Goods Price Index was forecasted to decrease by 2.7% in Oct 2016, compared with the same month a year ago and the result was again in line with the forecast.
Germany Consumer Price Index
Today in the Euro Zone, the Germany consumer price index, which measures the average price change for all goods and services will be released by the Statistiches Bundesamt Deutschland.
The forecast is slated for an increase of 0.2% in the German CPI in Oct 2016, compared with the previous month. The yearly change is forecasted for an increase of 0.8%. Let us see how the results shape, as a major deviation may impact the Euro in the short term.