Key Points
- The Euro climbed higher and moved above a major resistance area of 130.60 against the Japanese Yen.
- There is a steep bullish trend line with support at 131.00 forming on the hourly chart of EURJPY.
- Today in the Euro Zone, the Spanish Unemployment Change for July 2017 was released by the Spanish Government.
- The outcome was below the forecast, as the change was -26.9K, compared with the forecast of -66.5K.
EURJPY Technical Analysis
The Euro is after trading in a range for some time between 129.50 and 130.50 against the Japanese Yen made an upside move. The EURJPY pair surged higher and broke major resistance area of 130.60 and the 21 hourly simple moving average.
The pair traded as high as 131.39, and now it may correct lower towards the 23.6% Fib retracement level of the last wave from the 129.84 low to 131.39 high.
On the downside, there is a steep bullish trend line with support at 131.00 forming on the hourly chart of EURJPY. So, if the pair corrects lower from the current levels, the 131.00 handle is most likely to act as a support zone.
Spanish Unemployment Change
Today in the Euro Zone, the Spanish Unemployment Change for July 2017 was released by the Spanish Government. The market was positioned for no change of -66.5K compared with the last -98.3K.
The actual result was below the forecast, as the change was -26.9K. As per the report, the number of unemployed declined by around 26K in the offices of the Public Employment Service (SEPE). The report added that:
In the last 12 months, unemployment has been reduced by 347,137 people, with one month remaining a high annual rate of reduction, which stands at 9.4%. During the first 7 months of the year unemployment has decreased by 367,050 people.
Overall, the EURJPY pair may dip a few pips in the near term, but remains supported for more gains above 131.00.
