Key Points
- The Euro is in an uptrend against the Japanese yen, and trading above a major support of 117.90.
- There is a major bullish trend line formed on the hourly chart of EURJPY, which is acting as a support at 118.00-117.90.
- Today in the Euro Zone, the German Services PMI was released by the Markit Economics.
- The outcome was better than the forecast, as there was an increase from 54.2 to 55.0 in November 2016 (preliminary).
EURJPY Technical Analysis
The Euro traded higher recently and closed above the 117.80 resistance area against the Japanese yen. The EURJPY pair is currently in an uptrend, but testing a major bullish trend line formed on the hourly chart.
The 21 hourly simple moving average is also positioned near the trend line support. So, if there is a break and close below it, EURJPY pair come under a bearish pressure.
So, one may consider selling with a break and close, and look for a move towards the 117.60-50 support area where the pair may face buyers.
German Services PMI
Today during the London session, the Services PMI, which interviews German executives on the status of sales, employment, and their outlook was released by the Markit Economics.
The market was looking for a decline from the last reading of 54.2 to 54.0 in November 2016 (preliminary). However, the result was positive, as there was an increase to 55.0. The report added that the “Markit Flash Germany Composite Output Index posted 54.9, little-changed from October’s ten-month high of 55.1 and above the average this year so far (54.2). While service providers recorded an acceleration in activity growth, manufacturers noted a slight slowdown. The overall expansion in output was attributed by panellists to improved order intakes and increased capacity“.
Overall, the outcome was positive, but we cannot deny that the pair remains at a risk of a breakdown in the short term.
