Key Points
- The Euro after trading as high as 113.88 against the Japanese yen found sellers and moved down.
- The EURJPY pair is currently following a bearish trend line formed on the hourly chart.
- In the Euro Zone today, the German Gross Domestic Product was released by the Statistisches Bundesamt Deutschland.
- The outcome was in line with the forecast, as there was a rise of 0.4% in Q2 2016.
EURJPY Technical Analysis
The Euro recently moved towards the 113.90 level against the Japanese yen where sellers appeared. The EURJPY pair is currently moving lower, and following a bearish trend line formed on the hourly chart, which is acting as a resistance.
The pair is also below the 21 hourly simple moving average, which is acting as a barrier for buyers along with the trend line.
One may consider selling around the trend line and the 21 hourly SMA as long as the pair is below it.
German Gross Domestic Product
Today in the Euro Zone, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.4% in Q2 2016, compared with the previous quarter, and the result was as forecasted. In terms of the yearly change as well the outcome was as expected (+3.1%). The report added that “As regards domestic demand, there were mixed signals. The final consumption expenditure of households rose slightly by 0.2% and government final consumption expenditure increased by 0.6% on the previous quarter. Capital formation, however, declined compared with the first quarter. Fixed capital formation in machinery and equipment decreased by 2.4% and in construction by 1.6% on the first quarter of 2016.”
Overall, the Euro may remain under pressure vs the Japanese yen and might trade towards 113.10 in the short term.
