Key Points
- The Euro moved higher against the Japanese Yen and traded above the 124.00 resistance.
- There is a crucial bullish trend line with support at 124.45 forming on the hourly chart of EURJPY.
- Today in the Euro Zone, the German Producer Price Index for May 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was below the forecast, as there was a decline of 0.2% in the PPI (MoM).
EURJPY Technical Analysis
The Euro after forming a support at 122.40 against the Japanese Yen stated an upside move and moved above the 123.00 and 124.00 levels. The EURJPY pair traded above the last swing high of 123.86 and the 1.236 extension of the last decline from the 123.86 high to 122.40 low.
The pair is now well above the 124.20 support and the 21 hourly simple moving average. On the downside, there is a crucial bullish trend line with support at 124.45 forming on the hourly chart.
On the upside, the pair may break the 1.618 extension of the last decline from the 123.86 high to 122.40 low.
German Producer Price Index
Recently in the Euro Zone, the German Producer Price Index for May 2017 was released by the Statistisches Bundesamt Deutschland. The market was aligned for a decline of 0.1% in the PPI in May 2017, compared with the previous month.
The result was below the forecast, as there was a decline of 0.2% in the PPI. In terms of the yearly change, there was an increase of 2.8%, less than the forecast of 2.9%. The report added that “In May 2017 the price indices of all main industrial groups increased compared with May 2016: Energy prices rose by 3.0%, though the development of prices of the different energy carriers diverged”.
Overall, the EURJPY pair remains supported and likely to trade above the 124.70 level in the near term.
