Key Points
- The Euro remained in an uptrend against the Japanese yen, and likely to continue higher.
- There is a bullish trend line formed on the hourly chart of EURJPY, which may act as a support on the downside at 122.40.
- Today in the Euro Zone, the Germany consumer price index was released by the Statistisches Bundesamt Deutschland.
- The result was as per the forecast, as the CPI rose 0.8% in Nov 2016.
EURJPY Technical Analysis
The Euro recently traded as high as 122.93 against the Japanese yen before starting a correction. The EURJPY pair corrected lower, but found support near a bullish trend line formed on the hourly chart at 122.10.
The pair is trading higher at the moment, and remains supported on the downside near the ascending trend line at 122.40.
So, if you are looking to enter a buy trade in EURJPY, then consider it near the trend line support with a stop of a close below 122.25.
German CPI
Today in the Euro Zone, the Germany consumer price index, which measures the average price change for all goods and services purchased by households for consumption purposes was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.8% in Nov 2016, compared with the same month a year ago. The result was as per the forecast, as the CPI increased 0.8%. The report added that “Compared with a year earlier, household energy prices were down in November 2016 (–2.9%, including charges for central and district heating: –6.9%; heating oil: –6.7%; gas: –4.1%), as were motor fuel prices (–2.2%). Excluding energy prices, the inflation rate in November 2016 would have been +1.2%.”
Overall, the Euro may continue to gain bids and could retest the 123.00 handle against the Japanese yen in the short term.
