Key Points
- The Euro traded higher recently above the 133.60 resistance against the Japanese Yen.
- There is a connecting bullish trend line forming with support at 133.70 on the hourly chart of EURJPY.
- Recently in Japan, the Coincident Index for July 2017 was released by the Cabinet Office.
- The outcome was below the forecast of 116.00, as there was a decline from the last revised reading of 116.8 to 115.7.
EURJPY Technical Analysis
The Euro remained in an uptrend and traded above the 133.00 and 133.60 resistance levels against the Japanese Yen. The EURJPY pair traded as high as 134.46 where it faced sellers and started a downside correction towards the 21 hourly simple moving average.
The pair broke the 23.6% Fib retracement level of the last wave from the 132.27 low to 134.46 high. However, the downside move found support near 133.60 and the 38.2% Fib retracement level of the last wave from the 132.27 low to 134.46 high.
On the downside, there is a connecting bullish trend line forming with support at 133.70 on the hourly chart of EURJPY. As long as the trend line support is intact, the pair might attempt once again to break 134.40-50.
Japan’s Coincident Index
Recently in Japan, the Coincident Index for July 2017 was released by the Cabinet Office. The market was positioned for a minor increase from the last reading of 115.6 to 1160.0.
The actual result was below the forecast of 116.00, as there was a decline from the last revised reading of 116.8 to 115.7. Moreover, the Leading Economic Index was also released for July 2017. It also posted a decline from the last reading of 105.7 to 105.2.
Overall, the EURJPY pair might continue to trade higher as long as it is above the 133.60 support area.
