Key Points
- The Euro after trading as high as 114.00 against the Japanese yen found sellers and traded down.
- There is a support trend line formed on the hourly chart of the EURJPY pair, which prevented heavy losses and acted as a barrier for sellers.
- Earlier today, the Japanese Industrial Production was released by the Ministry of Economy, Trade and Industry.
- The outcome was positive, as there was a rise of 2.3% in production in June 2016, more than the last increase of 1.9%.
Technical Analysis
The Euro is under a minor bearish pressure against the Japanese yen, and may head lower in the short term. However, there is a support trend line formed on the hourly chart of the EURJPY pair waiting on the downside to stop losses.
The pair may move down and test the highlighted trend line and support area. It is currently below the 21 hourly simple moving average, which can be seen as a resistance on the upside.
Buying around the highlighted trend line and support may be considered as long as the pair is above it.
Japanese Industrial Production
Earlier today during the Asian session, the Industrial Production, which measures outputs of the Japanese factories and mines was released by the Ministry of Economy, Trade and Industry.
The forecast was lined up for a rise in June 2016, compared with the previous month. The result was above the forecast, as there was an increase of 2.3% in production. When we look at the yearly change, then there was a decline of 1.5% in June 2016, compared with the same month a year ago. The last decline was more (-1.9%). Overall, the result helped the Japanese yen to gain bids during the Asian session against the Euro.
There are chances of more losses in EURJPY in the short term, but the trend line support may play a major role in the short term.
