EURJPY – Euro Bullish Break Vs Yen

Key Points

• Euro managed to pop higher against the Japanese Yen, and looks set for more gains in the near term.
• There is a bullish flag pattern formed on the hourly chart of the EURJPY pair, which may pave the way for an upside move.
• Italian Trade Balance report was released by the National Institute of Statistics earlier today in the Euro Zone.
• There was a trade surplus of €4.04B in March 2016, as per the report published.

Technical Analysis

The Euro spiked higher and traded above the 125.00 level recently. However, it looks like the EURJPY pair is currently consolidating gains and forming a bullish flag pattern formed on the hourly chart. A break above the flag resistance area may call for more upsides.

The pair is positioned well above the 100 and 50 hourly simple moving average, which is pointing towards the buyer’s strength.

On the downside, the flag support area holds the key and may be seen as a buy zone.

Italian Trade Balance

In the Euro Zone today, the Italian Trade Balance, which is a balance between exports and imports of total goods and services was released by the National Institute of Statistics. The outcome was positive, as there was a trade surplus of €4.04B in March 2016, more than the last reading.

The report stated that “In March 2016 exports to non-EU countries decreased by 5.2% and imports decreased by 11.0% compared with the same month of the previous year. The trade balance showed a surplus of 4,036 million euro compared with a 3,422 million euro surplus in the same month of 2015”.

Overall, there was nothing negative for the Euro, which means the EURJPY pair may trade higher moving ahead.