Key Points
- The Euro after trading as low as 128.05 against the Japanese Yen started recovering higher.
- There was a break above a major bearish trend line with resistance near 128.60 on the hourly chart of the EURJPY pair.
- Recently in the Euro Zone, the Industrial Production figure for June 2017 was released by the Eurostat.
- The outcome was below the forecast of -0.5%, as there was a decline of 0.6% (MoM).
EURJPY Technical Analysis
The Euro was in a downtrend this past week and traded towards the 128.00 handle against the Japanese Yen. The EURJPY pair after trading as low as 128.05 started correcting higher and crawled above the 21 hourly simple moving average.
There was a break above a major bearish trend line with resistance near 128.60 on the hourly chart, opening the doors for more gains.
The pair is already trading near the last swing high of 129.60. Therefore, it may continue to move higher and test the 1.236 extension Fib level of the last decline from the 129.55 high to 128.05 low.
Euro Zone Industrial Production
Today in in the Euro Zone, the Industrial Production figure for June 2017 was released by the Eurostat. The market was positioned for a decline of 0.5% in the production compared with the previous month.
The actual result was below the forecast of -0.5%, as there was a decline of 0.6%. In terms of the yearly change, there was an increase of 2.6%, less than the forecast of +2.8%. The report added that:
The decrease of 0.6% in industrial production in the euro area in June 2017, compared with May 2017, is due to production of capital goods falling by 1.9%, durable consumer goods by 1.2%, non-durable consumer goods by 0.4% and intermediate goods by 0.3%, while production of energy rose by 1.8%.
Overall, the EURJPY pair is in an uptrend and it may soon break the 129.90 resistance to test 130.00.
