Key Points
- The Euro after a major decline found support at 131.40 against the Japanese Yen.
- There is an ascending channel forming with current support at 132.40 on the hourly chart of EURJPY.
- Today in Japan, the Monetary Base report for Oct 2017 was released by the Bank of Japan.
- The outcome was below the forecast of 15.7% as there was a rise in the base by 14.5% (YoY).
EURJPY Technical Analysis
The Euro started a major downside move from the 134.55-60 swing high against the Japanese Yen. The EURJPY pair declined by more than 200 pips, traded below 132.00 and settled below the 21 hourly simple moving average.
The pair traded as low as 131.39 and started a recovery. Buyers gained traction and the pair was able to move above the 21 hourly SMA and the 38.2% Fib retracement level of the last decline from the 134.55 high to 131.39 low.
It seems like there is an ascending channel forming with current support at 132.40 on the hourly chart. A beak above the channel resistance and the 50% Fib retracement level of the last decline from the 134.55 high to 131.39 low would call for more gains.
Japan’s Monetary Base
Recently in Japan, the Monetary Base report for Oct 2017 was released by the Bank of Japan. The market was positioned for an increase of 15.7% in the Monetary Base compared with the same month a year ago.
The actual result was below the forecast of 15.7% as there was a rise in the base by 14.5%. It was also less than the last reading of 15.6%.
Overall, the EURJPY pair might continue to move higher and most likely to break 133.00 in the near term.
