Key Points
- The Euro moved down and traded towards the 124.70 support against the Japanese Yen.
- There was a break below a major bullish trend line at 125.25 on the hourly chart of EURJPY.
- Today in Japan, the Corporate Service Price Index (CSPI) for March 2017 was released by the Bank of Japan.
- The outcome was below the forecast, as there was a rise of 0.7% in March 2017 (YoY), less than the forecast of +0.9%.
EURJPY Technical Analysis
The Euro after a nice upside move towards 125.81 against the Japanese Yen found resistance and started a downside move. The decline gained pace once there was a break of the 125.40 support and the 21 hourly simple moving average.
The pair also broke a major bullish trend line at 125.25 on the hourly chart of EURJPY, and traded towards the 124.70 support.
At the moment, the pair is attempting a correction from the 124.69 low, but likely to face sellers near the 23.6% Fib retracement level of the last decline from the 125.81 high to 124.69 low. Above 125.00, the 21 hourly simple moving average might act as a hurdle at 125.25.
Japan’s Corporate Service Price Index and CPI
Recently in Japan, the Corporate Service Price Index (CSPI) for March 2017 was released by the Bank of Japan. The market was positioned for the Service Price Index to increase by 0.9% in March 2017, compared with the same month a year ago.
The result was below the forecast, as there was a rise of 0.7% in March 2017 (YoY), less than the forecast of +0.9%. On the other hand, the National Consumer Price Index released by the Statistics Bureau for April 2017 (YoY) posted an increase of 0.4%, which was a lot more compared with the last +0.2%.
Overall, the EURJPY pair may struggle in the near term and likely to break 124.69 for further losses.
