Key Points
- The Euro traded higher recently against the Japanese yen, but found sellers near 122.00-122.20.
- The EURJPY pair traded lower after the failure, and moved below a bullish trend line at 121.95 on the hourly chart.
- Today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance.
- The result was better than the forecast, as the trade surplus was ¥641.4B in Dec 2016, compared with the forecast of ¥270.0B.
EURJPY Technical Analysis
The Euro made a nice upside move from the 121.20 low against the Japanese yen, but it found sellers near 122.00-122.20. The EURJPY pair started moving down, and broke a bullish trend line at 121.95 on the hourly chart.
The pair tested the 21 hourly simple moving, which acted as a support along with the 50% Fib retracement level of the last wave from the 121.13 low to 122.27 high.
The pair is once again moving higher, but it may find sellers near 122.00-122.20. The stated resistance area holds a lot of importance, and may continue to prevent a move towards 122.50. On the downside, the 21 hourly SMA is a support at 121.75.
Japanese Merchandise Trade Balance Total
Today, the Japanese Merchandise Trade Balance Total, which is a measure of balance amount between import and export was released by the Ministry of Finance. It was forecasted to post a trade surplus of ¥270.0B in Dec 2016.
However, the result better than the forecast, as the trade surplus was ¥641.4B in Dec 2016. The Japanese imports declined 2.6%, which was more than the forecast of -0.8%. However, the exports rose 5.4%, which was more than the expectation of 1.2%.
Overall, it looks like the EURJPY pair may trade lower towards 121.60 as long as it is below the 122.00-122.20 resistance area.
