EURJPY – Japanese Yen Remains in the Driver’s Seat Vs Euro14 October, 2016 by Aayush Jindal in EURJPY, Fundamental Analysis, Market Analysis, Technical Analysis
EURJPY – Japanese Yen Remains in the Driver’s Seat Vs Euro
- The Euro declined recently below 115.00 versus the Japanese yen and remained in a downtrend.
- There are a couple of bearish trend lines formed on the hourly chart of EURJPY, which may act as a resistance if the pair corrects higher.
- The Japanese Domestic Corporate Goods Price Index released by the Bank of Japan posted no change in Sep 2016, compared with August 2016.
- The yearly change for the Japanese Domestic Corporate Goods Price Index posted a decline of 3.2%.
EURJPY Technical Analysis
The Euro declined recently below the 115.00 support versus the Japanese yen to initiate a downtrend. It looks like the EURJPY pair is currently poised for more declines in the short term.
As mentioned, there are a couple of bearish trend lines formed on the hourly chart, which may play a major role for the Euro. If the buyers continue to face offers near them, there are chances of an extension of the current downside move towards 113.50.
The hourly RSI has just moved above the 50 level, which is a positive sign for the bulls for a change.
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 in Japan was released by the Bank of Japan. The market was aligned for a decline of 0.1% in Sep 2016, compared with August 2016. However, there was no change in the index in Sep 2016.
When we consider the yearly change, then the index declined 3.2% in Sep 2016, compared with the same month a year ago.
Moreover, the Money Supply M2+CD, which measures all the JPY in circulation, encompassing notes and coins as well as money held in bank accounts was also released today by the Bank of Japan. The last increase was of 3.3%, and this time in Sep 2016, it came in at 3.6%, compared with the same month a year ago.
Euro Zone Trade Balance
Today in the Euro Zone, the Trade Balance report will be released by the Eurostat. The forecast is lined up for the balance between exports and imports of total goods and services to post a trade surplus of €20.5B in August 2016.
If the result is not as the market is expecting, there are chances of the Euro facing sellers in the near term.