Key Points
- The Euro after trading towards 130.60 against the Japanese Yen found sellers and started a correction.
- There is a major bullish trend line with support at 129.80 forming on the hourly chart of EURJPY.
- Today in the Euro Zone, the French Consumer Confidence Index for July 2017 was released by INSEE.
- The outcome was below the forecast, as there was a decline in the index from the last reading of 108 to 104.
EURJPY Technical Analysis
The Euro gained decent ground towards 130.60 against the Japanese Yen, but later faced a lot of offers. The EURJPY pair started declining and moved below the 130.30 support area and looks set for more declines in the near term.
It is already below the 23.6% Fib retracement level of the last wave from the 129.25 low to 130.59 high. On the downside, there is a major bullish trend line with support at 129.80 forming on the hourly chart, which is also aligned with the 21 hourly simple moving average.
Moreover, the 61.8% Fib retracement level of the last wave from the 129.25 low to 130.59 high is at 129.76. So, the 129.70-80 area can be considered as a good buy zone in the near term.
French Consumer Confidence Index
Today in the Euro Zone, the French Consumer Confidence Index for July 2017 was released by INSEE. The market was positioned for no change from the last reading of 108.
The actual result was below the forecast, as there was a decline in the index from the last reading of 108 to 104. The report added that:
In July 2017, households’ confidence in the economic situation has declined markedly: the composite indicator has lost 4 points and reached 104, after gaining 8 points over the two previous months. However, it stays above its long-term average (100).
Overall, the EURJPY pair may continue to decline, but most likely to find support near the 129.80 and 129.70 support levels.
