Key Points
- The Euro made a downside move towards 128.50 against the Japanese before starting a recovery.
- There is a major bullish trend line with support at 129.05 forming on the hourly chart of EURJPY.
- Recently in Japan, the Reuters Tankan Index was released for July 2017 by the Reuters.
- The outcome was in line with the forecast, as the index remained at 26, unchanged from the last reading.
EURJPY Technical Analysis
The Euro after a decline towards the 128.50 support area against the Japanese found bids and started correcting higher. It traded above the 23.6% Fib retracement level of the last decline from the 130.86 high to 128.49 low.
However, the upside move faced sellers near a major resistance at 129.65 and the 50% Fib retracement level of the last decline from the 130.86 high to 128.49 low.
The pair is currently below the 21 hourly simple moving average, but there is a major bullish trend line with support at 129.05 on the hourly chart. So, as long as the pair is above the trend line support, it may continue to move higher and challenge the 129.65-70 barrier once again in the near term.
Japan’s Reuters Tankan Index
Recently in Japan, the Reuters Tankan Index was released for July 2017 by the Reuters. The market was positioned for no change in the index from 26.
The actual result was in line with the forecast, as the index remained at 26. Tomorrow, the Adjusted Merchandise Trade Balance in Japan for June 2017 will be released by the Ministry of Finance. The market is expecting a stable reading of ¥127.5B.
Overall, the EURJPY pair is well supported near 129.05, but may struggle to break the 129.65 resistance.
