Key Points
- The Euro is trading higher against the Japanese yen, and currently trading near a major resistance.
- There is a major resistance formed near 114.10, which is protecting an upside break.
- In Japan today, the Tankan Large All Industry Capital Expenditure was released by the Bank of Japan.
- There was an increase of 6.3% in Q2 2016, but the market was expecting 6.8%.
EURJPY Technical Analysis
The Euro after trading as low as 112.60 against the Japanese yen found buyers and started trading higher. The EURJPY pair broke the 21 hourly simple moving average to set a bullish trend.
However, the pair is currently facing a major resistance near 114.10, as can be seen from the hourly chart. It acted as a hurdle for the Euro bulls on many occasions.
If the Euro bulls succeed in breaking the highlighted trend line resistance zone, there are chances of more gains in the near term, may be towards 114.50.
Tankan Large All Industry Capital Expenditure
Today in Japan, the Tankan Large All Industry Capital Expenditure, which measures capital expenditure (capex) of all the Japanese industries except the financial industry was released by the Bank of Japan.
The market was expecting a rise of 6.8% in the Tankan Large All Industry Capital Expenditure in Q2 2016. However, the result was a bit lower, as there was an increase of 6.3%. The Tankan large Manufacturing Outlook posted no change from 6, but the market was expecting a rise to 8. Similarly, the Tankan Large Manufacturing Index posted no change from 6, but the market was expecting a rise to 7.
Overall, the Euro is trading with a bullish bias versus the Japanese yen, and a break above the resistance may call for more gains moving ahead.
