Key Points
- The Euro started a correction from the 134.20 high against the Japanese Yen.
- There is a major bullish trend line forming with support at 133.30 on the hourly chart of EURJPY.
- Recently in Japan, the Nikkei Manufacturing PMI for Oct 2017 (Prelim) was released.
- The outcome was below the forecast of 53.1 as there was a decline from the last reading of 52.9 to 52.5.
EURJPY Technical Analysis
The Euro was in a solid uptrend and traded above the 134.00 handle against the Japanese Yen. The EURJPY pair traded as high as 134.19 before starting a correction. It moved down and traded below the 38.2% fib retracement level of the last wave from the 132.42 low to 134.19 high.
There was a close below the 134.00 level and the 21 hourly simple moving average. At the moment, the pair is finding bids near major bullish trend line with support at 133.30 on the hourly chart of EURJPY.
The 50% fib retracement level of the last wave from the 132.42 low to 134.19 high also acting as a decent support. Therefore, there are chances of EURJPY recovering from 133.30 towards the 134.00 handle.
Nikkei Manufacturing PMI
Recently in Japan, the Nikkei Manufacturing PMI for Oct 2017 (Prelim) was released. The market was positioned for a minor rise in the PMI from the last reading of 52.9 to 53.1.
The actual result was below the forecast of 53.1 as there was a decline from the last reading of 52.9 to 52.5. The report added that:
Flash Japan Manufacturing PMI signals solid growth, but edges lower to 52.5 in October (52.9 in September). Flash Manufacturing Output Index at 52.6 (53.2 in September). Business confidence softens to 11-month low.
Overall, the EURJPY pair remains supported above 133.30 and might resume its uptrend in the short term.
