Key Points
- The Euro declined recently after creating a top near 133.40 against the Japanese Yen.
- There was a break below a major bullish trend line with support at 132.85 on the hourly chart of EURJPY.
- Today in Japan, the Money Supply M2+CD for Sep 2017 was released by the Bank of Japan.
- The outcome was above the forecast of 4% as there was a rise of 4.1% the supply (YoY).
EURJPY Technical Analysis
The Euro was in a solid uptrend until it found sellers near 133.40 against the Japanese Yen. The EURJPY pair made a short-term top at 133.44 and started a downside move. It traded below the 133.00 level and the 21 hourly simple moving average.
During the downside move, the pair also broke the 38.2% Fib retracement level of the last wave from the 131.84 low to 133.84 high. Moreover, there was a break below a major bullish trend line with support at 132.85 on the hourly chart.
The pair almost tested the 50% Fib retracement level of the last wave from the 131.84 low to 133.84 high and is currently correcting higher. It might trade towards 133.00 and the 21 hourly SMA where sellers are likely to emerge.
Japan’s Money Supply M2+CD
Recently in Japan, the Money Supply M2+CD for Sep 2017 was released by the Bank of Japan. The market was positioned for the Money Supply M2+CD to increase by 4% compared with the same month a year ago.
The actual result was above the forecast of 4% as there was a rise of 4.1% the supply. It was also above the last 4%. Moreover, the Securities investment, released by Ministry of Finance posted a reading of ¥89.2B, more than the last ¥-1,014.1B.
Overall, the EURJPY pair might correct a few pips higher in the near term, but remains sell on rallies close to 133.00.
