Key Points
- The Euro is following a bullish path above 128.00 against the Japanese Yen.
- There is a key contracting triangle pattern with resistance at 129.00 forming on the hourly chart of EURJPY.
- Today in the Euro Zone, the Factory orders report for May 2017 was released by the Deutsche Bundesbank.
- The outcome was below the forecast, as there was a rise of 1% compared to the forecast of 2%.
EURJPY Technical Analysis
The Euro made a nice upside move from the 126.40 level against the Japanese Yen. The EURJPY pair traded higher and had an hourly close above 128.00 to ignite upsides The pair recently broke the 128.50 level and the 21 hourly simple moving average.
There is a key contracting triangle pattern with resistance at 129.00 forming on the hourly chart. The pair recently moved above the 50% Fib retracement level of the last decline from the 129.11 high to 128.00 low, which is a positive sign.
Once there is a break above the 128.70 level and the 61.8% Fib retracement level of the last decline from the 129.11 high to 128.00 low, there can be further gains in the near term.
Euro Zone Factory Orders
Today in the Euro Zone, the Factory orders report for May 2017 was released by the Deutsche Bundesbank. The market was positioned for an increase of around 2% compared with the previous month.
The actual result was below the forecast, as there was a rise of 1% compared to the forecast of 2%. In terms of the yearly change, there was a rise of 3.7%, less than the last revised reading of 3.3%. The report stated that:
In May 2017, domestic orders decreased by 1.9% while foreign orders increased by 3.1% on the previous month. New orders from the euro area were up 1.7%, new orders from other countries increased 4.0% compared to April 2017.
Overall, the EURJPY pair may continue to move higher and could even break 128.80 to challenge 129.00.
