Key Points
- The Euro climbed higher and traded above the 131.00 level against the Japanese Yen.
- There is a crucial bullish trend line forming with support at 130.90 on the hourly chart of the EURJPY pair.
- Today in Japan, the Industrial Production for July 2017 (Prelim) was released by the Ministry of Economy, Trade and Industry.
- The outcome was below the forecast of -0.4%, as there was a decline in the production by 0.8% (MoM).
EURJPY Technical Analysis
The Euro traded higher this week and moved above 129.50 and 130.00 levels against the Japanese Yen. The EURJPY pair traded as high as 131.71 where it faced sellers and currently correcting lower towards the 21 hourly simple moving average.
The pair has already tested the 38.2% Fib retracement level of the last wave from the 129.66 low to 131.71 high, and the 21 hourly simple moving average.
On the downside, there is a crucial bullish trend line forming with support at 130.90 on the hourly chart of the EURJPY pair. The trend line resistance along with the 50% Fib retracement level of the last wave from the 129.66 low to 131.71 high holds a lot value. As long as the pair is above 130.90 and 130.80, it is likely to move back higher.
Japan’s Industrial Production
Today in Japan, the Industrial Production for July 2017 (Prelim) was released by the Ministry of Economy, Trade and Industry. The market was positioned for a decline of 0.4% in the production compared with the previous month.
The actual result was below the forecast of -0.4%, as there was a decline in the production by 0.8%. The yearly change was forecasted to increase by 5.1%, a bit less than the last +5.5%. It was also on the lower side, as the actual was +4.7%.
Overall, the EURJPY pair might correct a few pips from the current levels, but remains supported near 130.90-80.
