Key Points
- The Euro is attempting to clear a major resistance area against the Japanese yen.
- There is a major breakout pattern forming on the hourly chart of the EURJPY pair, which may provide us the next break.
- Today, the German Unemployment Change report was published by the German Statistics Office.
- The outcome was positive, as the German Unemployment Change came in at -7K in July 2016, compared with the forecast of -3K.
Technical Analysis
The Euro traded higher recently against the Japanese yen and settled above the 21 hourly simple moving average. The pair is currently forming a breakout pattern forming on the hourly chart in the form of a triangle.
The triangle resistance trend line is acting as a major for an upside break in the EURJPY pair.
However, if the pair stays above the 21 hourly SMA, then there is a real chance of it gaining pace and trading further higher.
German Unemployment Change
Today in the Euro Zone, the Unemployment Change, which is a measure of the absolute change in the number of unemployed people in Germany using seasonally adjusted data was published by the German Statistics Office.
The forecast was lined up for a change of -3K in July 2016. However, the result was above the forecast, as the change was -7K. The report stated that “Compared with the same month a year earlier, this was a strong increase of 528,000 or 1.2%. Since December 2015, employment has continuously increased, with year-on-year growth rates of 1.2% each. Roughly 1.8 million people were unemployed in June 2016, 138,000 fewer than a year earlier.”
Overall, if the bulls manage to break the triangle resistance area, then there is a chance of more gains in EURJPY moving ahead.
