Key Points
- The Euro managed to gain momentum recently and traded above 124.60 against the Japanese Yen.
- There is a crucial bullish trend line with support at 124.60 forming on the hourly chart of the EURJPY pair.
- Recently in the Euro Zone, the German business sentiment index for June 2017 was released by the CESifo Group.
- The outcome was above the forecast, as the business index moved higher to 115.1 from the last reading of 114.6.
EURJPY Technical Analysis
The Euro started an upside move from the 123.65 low against the Japanese Yen. The EURJPY pair moved nicely and cleared the 124.00 handle to trade above the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 124.63 high to 123.65 low.
The pair has moved above the last swing high at 124.63 and currently trading above the 1.236 extension of the last decline from the 124.63 high to 123.65 low.
If the current trend remains intact, the pair may break 125.00 and even test the 1.618 extension of the last decline from the 124.63 high to 123.65 low. On the downside, the 124.60 level is now a major support area for buyers.
German Business Climate Index
Recently in the Euro Zone, the German business sentiment index for June 2017 was released by the CESifo Group. The forecast was lined up for a decrease from the last reading of 114.6 to 114.4 in June 2017.
However, the result was above the forecast, as business index moved higher to 115.1 from the last reading of 114.6. The report stated that “Companies were significantly more satisfied with their current business situation this month. They also expect business to improve. Germany’s economy is performing very strongly”.
Overall, the EURJPY pair may continue to extend gains above the 125.00 level in the near term.
