Key Points
- The Euro struggled recently to break the 130.80-90 resistance area against the Japanese Yen, and moved down.
- The EURJPY pair is currently attempting a close below a major bullish trend line support at 130.40 on the hourly chart.
- Today in Japan, the Domestic Corporate Goods Price Index for June 2017 was released by the Bank of Japan.
- The outcome was in line with the forecast, as there was no change in the index (MoM).
EURJPY Technical Analysis
The Euro started a nice uptrend and traded above the 130.00 handle recently against the Japanese Yen. Later, the EURJPY pair faced sellers near 130.80 and started a downside move.
The pair is currently attempting a close below a major bullish trend line support at 130.40 on the hourly chart. It is also attempting a close below the 21 hourly simple moving average and the 50% Fib retracement level of the last wave from the 129.65 low to 130.86 high.
A successful close below 130.40 and the 21 hourly simple moving average might open the doors for more declines in the near term.
Japanese Domestic Corporate Goods Price Index
Today in Japan, the Domestic Corporate Goods Price Index for June 2017 was released by the Bank of Japan. The market was positioned for no change in the index compared with the previous month.
The actual result was in line with the forecast, as there was no change in the index. In terms of the yearly change, there was an increase of 2.1%, which was again in line with the forecast and similar to the last rise of 2.1%. The report added that:
The Producer Price Index was unchanged from the previous month. The Export Price Index (contract currency basis) fell 0.2 percent from the previous month. The Import Price Index (contract currency basis) fell 0.8 percent from the previous month.
Overall, the EURJPY pair looks set for more declines and could even trade below 130.00 in the near term.
