Key Points
- There Euro moved down recently and cleared the 123.20 support against the Japanese Yen.
- There was a break below a contracting triangle support at 123.25 on the hourly chart of EURJPY.
- Today, the Japanese Business Survey Index (BSI) Large Manufacturing for Q2 2017 was released by the Ministry of Finance.
- The outcome was below the forecast, as there was a decline in the Index from 1.1 to -2.9.
EURJPY Technical Analysis
The Euro after trading as low as 122.65 against the Japanese Yen recovered, but failed to break the 124.00 handle. The EURJPY pair started moving inside a contracting triangle support at 123.25 on the hourly chart of EURJPY.
Later, the pair moved down, and broke the triangle support at 123.25 and the 21 hourly simple moving average to trade towards 122.80.
The pair traded as low as 122.79 and later started a correction to move above the 23.6% Fib retracement level of the last decline from the 123.72 high to 122.79 low. However, the broken triangle trend line and the 50% Fib retracement level of the last decline from the 123.72 high to 122.79 low at 123.25 is acting as a resistance.
Japanese Business Survey Index (BSI) Large Manufacturing
Recently in Japan, the Business Survey Index (BSI) Large Manufacturing for Q2 2017 was released by the Ministry of Finance. The market was positioned for a rise in the Index from the last reading of 1.1 to 1.5 in Q2 2017, compared with the previous quarter.
The result was below the forecast, as there was a decline in the Index from 1.1 to -2.9. Moreover, the Japanese Business Survey Index (BSI) Large Non-Manufacturing for Q2 2017 posted a decline from 1.5 to -1.6.
Overall, the EURJPY pair may correct a few pips higher towards 123.25-30, but likely to face a lot of hurdles in the near term.
