Key Points
- The Euro made a nice upside move recently and traded above 133.20 against the Japanese Yen.
- There is a major bullish trend line forming with current support at 133.30 on the hourly chart of EURJPY.
- Recently in Japan, the Gross Domestic Product for Q3 2017 (Prelim) was released by the Cabinet Office.
- The outcome was above the forecast of +1.3% as there was an increase of 1.4% (YoY).
EURJPY Technical Analysis
The Euro started a nice upside move from the 132.00 swing low against the Japanese Yen. The EURJPY pair succeeded in moving above the 133.00 and 133.20 resistance levels, and is currently placed well above the 21 hourly simple moving average.
The pair recently traded as high as 133.91 and is currently correcting lower. An initial support is near the 23.6% Fib retracement level of the last wave from the 131.93 low to 133.91 low.
Moreover, there is a major bullish trend line forming with current support at 133.30 on the hourly chart. The trend line support is just above the 38.2% Fib retracement level of the last wave from the 131.93 low to 133.91 low. Therefore, the 133.30-20 area is a key support zone in the short term.
Japan’s Gross Domestic Product
Recently in Japan, the Gross Domestic Product for Q3 2017 (Prelim) was released by the Cabinet Office. The market was positioned for the GDP to increase around 1.3% in Q3 2017 compared with the same quarter a year ago.
The actual result was above the forecast of +1.3% as there was an increase of 1.4%. In terms of the quarterly change, there was an increase of 0.3%, which was similar to the forecast, but less than the last increase of 0.6%.
Overall, the EURJPY pair remains in an uptrend and any corrections are likely to find bids near the 133.30-20 levels in the short term.
