Key Points
- The Euro opened lower this week against the US Dollar and yen due Italy’s Prime Minister Defeat in the constitutional referendum.
- The EURJPY pair traded as low as 118.71 before the Euro bulls managed to take the pair higher.
- Today in the Euro Zone, the PMI service was released by the Markit Economics.
- There outcome below the forecast of 54.1, as there was a decline to 53.8 in Nov 2016.
EURJPY Technical Analysis
The Euro traded lower and opened lower this week against the US Dollar and Japanese yen. The Italian referendum was the spoiler in taking the Euro down. There was a sharp decline in EURJPY towards 118.80 before the Euro buyers stepped in and pushed the pair higher.
The pair is back in the bullish zone, and currently attempting to break a major resistance area at 121.60-80.
The highlighted resistance area is very important. It may produce a minor decline towards the 21 hourly simple moving average, which might act as a support.
Euro Zone Services PMI
Today in the Euro Zone, the PMI service, which is an indicator of the economic situation in the Euro Zone services sector was released by the Markit Economics.
The market was not expecting any decrease in the PMI from 54.1 in Nov 2016. However, the result was lower, as there was a decline to 53.8. The report stated that “final Markit Eurozone Manufacturing PMI® rose to a 34-month high of 53.7 in November, up from 53.5 in October and unchanged from the earlier flash estimate. The PMI signalled expansion for the forty-first successive month, extending its current record sequence above the stagnation mark of 50.0”.
Overall, it looks like the EURJPY pair is recovering well, and if there is a break above 121.80, more gains are possible.
