Key Points
- The Euro traded higher towards 119.90 against the Japanese yen, and currently looking to correct lower.
- There was a major bearish trend line break at 119.30 on the hourly chart of EURJPY, which may now act as a support.
- Today in Japan, the Nikkei Manufacturing PMI for Feb 2017 was released.
- The result was below the market expectation, as there was a decline from 53.5 to 53.3 in Feb 2017.
EURJPY Technical Analysis
The Euro enjoyed a decent upside move above 119.00 against the Japanese yen, and traded as high as 119.89. The EURJPY pair during the upside broke the 21 hourly simple moving average and a major bearish trend line break at 119.30 on the hourly chart.
At the moment, the pair is trading near the 23.6% Fib retracement level of the last wave from the 118.66 low to 119.89 high.
If it continues to move down from here, then the broken resistance at 119.30 may provide support. It also coincides with the 50% Fib retracement level of the last wave from the 118.66 low to 119.89 high.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI (for Feb 2017), which gives an early snapshot of the health of the manufacturing sector was released. It was forecasted to remain stable near 53.5 in Feb 2017.
The outcome was below the forecast, as there was a decline from 53.5 to 53.3 in Feb 2017. Commenting on the report, an economist at IHS Markit, Samuel Agass, stated “The health of Japan’s manufacturing sector improved at a pace not seen in nearly three years during February, with all five PMI sub-components improving since January. Growth was underpinned by a broad-based uptick in new orders, subsequently leading to the first accumulation in outstanding business for 14 months”.
Overall, the Euro remains supported, and dips towards 119.30 and 119.40 may be considered as buying opportunity vs the Japanese yen.
