Key Points
- The Euro recently fell towards 121.30 against the Japanese yen where it found support.
- The EURJPY pair is bouncing, but may find resistance near a bearish trend line on the hourly chart at 122.20-122.30.
- Today in the Euro Zone, the French Gross Domestic Product was released by INSEE.
- The result was better, as the GDP grew by 0.4% in Q4 2016 (preliminary), more than the last 0.2%.
EURJPY Technical Analysis
The Euro after a solid downside move against the Japanese yen found support near 121.30, and moved higher. The upside move was such that the EURJPY pair traded above the 23.6% Fib retracement level of the last decline from the 123.30 high to 121.29 low.
However, the pair is heading towards a major resistance at 122.20, as there is a bearish trend line on the hourly chart waiting along with the 21 hourly simple moving average.
So, if the pair continues to move higher, there is a chance of a reaction near 122.10-30. Sellers may even consider selling with a stop above 122.40.
French Gross Domestic Product
Today in the Euro Zone, the French Gross Domestic Product, which is a measure of the total value of all goods and services produced by France was released by INSEE. The market was looking no change from the last rate of 0.2% I Q4 2016 (preliminary), compared with the previous quarter.
However, the result was better, as the GDP grew by 0.4% in Q4 2016 (preliminary). The report added that in “Q4 2016, GDP in volume terms* accelerated: +0.4%, after +0.2% in Q3. On average over the year, GDP kept rising, practically at the same pace: +1.1% after +1.2% in 2015. Without working day adjustment, GDP growth amounts to +1.2 % in 2016, after +1.3 % in 2015”.
Overall, the Euro had all reasons to bounce sharply against the Japanese yen, but it may face offers near the 122.10-30 level in the short term.
