Key Points
- The Euro after a sharp decline found support near 131.20 against the Japanese Yen.
- There was a break above a key bearish trend line with resistance at 131.50 on the hourly chart of EURJPY.
- Recently in Japan, the foreign bond investment (Nov 17, 2017) report was released by Ministry of Finance.
- The outcome was above the market forecast as the foreign bond investment came in at ¥231.3B.
EURJPY Technical Analysis
The Euro remained in a downtrend and it recently traded below the 131.80 support area against the Japanese Yen. The EURJPY pair traded towards the 131.00 handle where buyers appeared and later the pair started an upside correction.
During the upside, there was a break above a key bearish trend line with resistance at 131.50 on the hourly chart. The pair also managed to move above the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 132.44 high to 131.20 low.
It might soon gain momentum above 132.00 and trade towards the 132.40 level. An intermediate resistance is around the 76.4% Fib retracement level of the last decline from the 132.44 high to 131.20 low. On the downside, the 131.65 level and the 21 hourly SMA are support zones.
Japan’s Foreign Bond Investment
Recently in Japan, the foreign bond investment (Nov 17, 2017) report was released by Ministry of Finance. The market was looking for the foreign bond investment to be around ¥100B.
The actual result was above the market forecast as the foreign bond investment came in at ¥231.3B. Moreover, the foreign investment in Japan stocks came in at ¥-324.5B compared with the last revised ¥183.2B.
Overall, the EURJPY pair is trading with a positive bias and will most likely move towards the 132.20-40 levels in the near term.
