EUR/JPY: Is This Upside Break in Euro to Yen?14 March, 2018 by Aayush Jindal in Market Analysis
- The Euro started a nice upside move from the 130.50 swing low against the Japanese Yen.
- There was a break above a crucial contracting triangle with resistance at 131.60 on the 4-hours chart of EUR/JPY.
- The pair could gain traction if it continues to find support near 131.50.
- Today, the German CPI figures for Feb 2018 will be released, which is expected to rise 0.5% (MoM).
EURJPY Technical Analysis
The Euro moved higher after consolidating around the 130.00 handle against the Japanese Yen. The EUR/JPY pair broke a major resistance near 131.50 to move into a positive zone.
Looking at the 4-hours chart of EUR/JPY, the pair succeeded in forming a support base above 130.50 and moved higher. It broke the 50% Fib retracement level of the last decline from the 133.05 high to 129.37 low.
Moreover, there was a break above a crucial contracting triangle with resistance at 131.60, which opened the doors for more gains. Most importantly, the pair settled above 131.50 and 100 simple moving average (red, 4-hour).
On the upside, the next major hurdle is near the last high of 133.05 since it is close to the 200 simple moving average (green, 4-hour).
If the pair starts a downside correction from the current levels, the broken resistance near 131.50 may perhaps as a support. Below 131.50 and 100 simple moving average (red, 4-hour), the pair could move back in the bearish zone.
Economic Releases to Watch Today
- German Consumer Price Index for Feb 2018 (YoY) – Forecast +1.4%, versus +1.4% previous.
- German Consumer Price Index for Feb 2018 (MoM) – Forecast +0.5%, versus +0.5% previous.
- Euro Zone Industrial Production for Jan 2018 (MoM) – Forecast -0.4%, versus +0.4% previous.
- US Retail Sales for March 2018 (MoM) – Forecast +0.3%, versus -0.3% previous.
- US Producer Price Index for Feb 2018 (MoM) – Forecast +0.1%, versus +0.4% previous.
- US Producer Price Index for Feb 2018 (YoY) – Forecast +2.8%, versus +2.7% previous.