Key Points
- The Euro made a couple of attempts to trade higher versus the Japanese yen, but sellers defended the upside successfully.
- There is a resistance trend line formed on the hourly chart of the EURJPY pair, which along with the 21 hourly simple moving average acting as a hurdle.
- Today in the Euro Zone, the Italian Business Confidence was released by the Istat.
- The result was positive, as there was a rise from the last reading of 101.1 to 101.9 in Sep 2016.
EURJPY Technical Analysis
The Euro fell from the 114.40 high versus the Japanese yen to trade near 112.00 where somehow the buyers prevented the downside move. The EURJPY pair managed to recover recently, but the upside was stalled near a resistance trend line formed on the hourly chart and the 21 hourly simple moving average.
The pair once again making an attempt to move higher, but the 21 hourly SMA is acting as a resistance.
On the downside, there is a bullish trend line formed, which is providing support. Overall, the pair may range trade before a break.
Italian Business Confidence
Today in the Euro Zone, the Italian Business Confidence, which is a survey of the current business condition in Italy was released by the Istat.
The market was expecting a minor decline in the Italian Business Confidence from the last reading of 101.1 to 101.0 in Sep 2016. However, the result was positive, as there was a rise to 101.9. The report highlighted that “the confidence climate index decreased in September 2016 from 109.1 to 108.7. The economic and the future components grew: economic from 125.7 to 128.0, future from 112.2 to 112.8, while the personal and the current components lowered (from 103.6 to 102.8 and from 107.2 to 106.8 respectively)”.
Overall, the Euro may attempt to trade higher in the short term, but the highlighted resistance zone holds the key moving ahead.
