EURJPY – Euro To Japanese Yen Overcomes Bearish Trend25 April, 2017 by Aayush Jindal in Market Analysis
- The upside move in the Euro continued, as it traded positively above 119.00 against the Japanese Yen.
- The EURJPY pair is now well above the 119.20 resistance, and the 100 and 200 simple moving averages (H4).
- Today in Japan, the Corporate Service Price Index (CSPI) for Feb 2017 (YoY) released by the Bank of Japan posted an increase of 0.8%.
- Today in the US, the Consumer Confidence for April 2017 will be released by the Conference Board, which is forecasted to decrease from 125.6 to 122.9.
EURJPY Technical Analysis
The Euro opened with more than 200 pips up versus the Japanese Yen. Now, the EURJPY pair looks set for more gains, and may climb above 120.50 in the near term.
The pair is now well above a monster bearish trend line on the 4-hours chart at 116.24. It successfully settled above the 119.20 resistance, and the 100 and 200 simple moving averages (H4), which are positive signs.
There was a new high formed at 120.74 before the pair corrected lower. It tested the 100 SMA, and the 23.6% Fib retracement level of the last wave up from 114.85 to 120.74. So, there is a chance of EURJPY gaining bids once more and break the 120.50 resistance.
Japanese Corporate Service Price Index
Earlier during the Asian session, the Corporate Service Price Index (CSPI) for Feb 2017 (YoY) was released by the Bank of Japan. The market was positioned for the prices of services traded among companies to increase by 0.8% in Feb 2017, compared with the same month a year ago.
The actual result was in line with the forecast, as the Corporate Service Price Index rose 0.8% in Feb 2017. The Japanese Yen failed to gain traction, which is why EURJPY could trade back towards 119.60.
Economic Releases to Watch Today
- S&P/Case-Shiller Home Price Indices for Feb 2017 (YoY) – Forecast +5.7%, versus +5.7% previous.
- US New Home Sales for March 2017 – Forecast -1.5% (MoM) versus +6.1% previous.
- US New Home Sales Change for March 2017 – Forecast 0.582M (MoM) versus 0.592M previous.
- US House Price Index for Feb 2017 – Forecast +0.3% (MoM) versus 0% previous.
- US Consumer Confidence April 2017 – Forecast 122.9, versus 125.6 previous.