Key Points
- The Euro crashed against the Japanese yen today as the US elected president as Donald trump.
- However, the EURJPY pair later found support once the results were final from the 113.80-114.00 support area.
- Today in Japan, the Eco Watchers Survey was released by the Cabinet Office.
- The result was better than the last time, as the current index rose from 44.8 to 46.2 in Oct 2016.
EURJPY Technical Analysis
The Euro after nosediving towards the 113.580 level against the Japanese yen recovered. The main point was that there was a break below a channel pattern on the hourly chart, but it resulted in a false break later on.
The pair is currently recovering and already moved above the 50% Fib retracement level of the last decline from the 116.01 high to 113.72 low.
It is currently facing sellers near the 21 hourly simple moving average and the 61.8% Fib retracement level of the same wave. So, it may correct a few pips lower once again, but likely to remain supported on the downside.
Japanese Eco Watchers Survey
Today, there was a lot of action during the Asian session and London session. Donald Trump’s win took the market by surprise and we saw swing moves. In Japan, the Eco Watchers Survey, which closely watches region-by-region economic trends was released by the Cabinet Office.
The market was expecting no major rise from the last reading of 44.8 in Oct 2016. However, the result was better, as there was a rise of 46.2 (current index). Moreover, the Japanese Eco Watchers Outlook index also rose from the last index of 48.5 to 49.0 in Oct 2016.
Overall, it looks there was a false break in the EURJPY, and it may recover from the losses and trade back above the 115.50 level.
