EURJPY – Euro’s Bear Run Has Come To End Vs Japanese Yen?28 October, 2016 by Aayush Jindal in EURJPY, Fundamental Analysis, Market Analysis, Technical Analysis
EURJPY – Euro’s Bear Run Has Come To End Vs Japanese Yen?
- The Euro surged higher recently after trading as low as 112.61 against the Japanese yen.
- The EURJPY pair traded with a positive bias this week, and broke a major bearish trend line on the 4-hours chart at 113.50.
- Today, the Japanese National Consumer Price Index released by the Statistics Bureau posted a decrease of 0.5% in Sep 2016, compared with Sep 2015.
- The Tokyo Consumer Price Index posted a rise of 0.1% in Sep 2016, compared with Sep 2015.
EURJPY Technical Analysis
The Euro recently spike higher to trade above the 114.00 resistance area against the Japanese yen. The EURJPY is also above the 100 simple moving average (H4 chart), signaling further gains.
As can be seen from the 4-hours chart of EURJPY, there was a break above a major bearish trend line, opening the doors for a move towards 115.00. The pair also climbed above the 50% Fib retracement level of the last decline from the 116.28 high to 112.61 low.
So, there is a chance that the pair may continue to move higher, and could even break the 61.8% Fib level of the same decline to test the 115.00 handle. On the downside, the 100 simple moving average (H4 chart) can be considered as a support area.
Japanese National Consumer Price Index
Today, there were a few important releases in Japan like Japanese National Consumer Price Index, Tokyo Consumer Price Index and the Unemployment rate. 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 market was expecting a decline of around 0.5% in Sep 2016, compared with Sep 2015, and the result was in line with the forecast. Moreover, the Tokyo Consumer Price Index registered a better than the forecast reading of a 0.1% rise in Sep 2016, compared with Sep 2015.
German CPI and Euro Zone Consumer Confidence
There are a few releases in the Euro Zone aligned, which may impact the Euro like the Euro Zone Consumer Confidence and the Germany Consumer Price Index. Both releases may create volatility in the Euro, and traders must trade carefully during the London session today.