Key Points
- The Euro moved higher recently against the Japanese Yen to trade towards 122.00.
- At the moment, the EURJPY pair is attempting a break above 121.65 and a bearish trend line on the hourly chart.
- Today in Japan, the Nikkei Manufacturing PMI for April 2017 was released.
- The outcome was just below the forecast, as there was a minor decline in the PMI from 52.8 to 52.7 in April 2017.
EURJPY Technical Analysis
The Euro moved higher and gained pace against the Japanese Yen above the 121.00 level, and recently managed to test the 122.00 level where it found resistance. The EURJPY pair moved down and traded below the 23.6% Fib retracement level of the last wave from the 120.60 low to 122.00 high.
The downside move extended towards the 121.30 level, which acted as a strong support along with the 50% Fib retracement level of the last wave from the 120.60 low to 122.00 high.
The pair is once again moving higher, and currently attempting a break above 121.65 and a bearish trend line on the hourly chart. A break above 121.70 may call for another upside push towards the 122.00 resistance in the near term.
Nikkei Manufacturing PMI
Recently in Japan, the Nikkei Manufacturing PMI for April 2017 was released. The forecast was lined up for the indicator of business conditions and the overall economic condition to remain stable at 52.8 in April 2017.
The result was just below the forecast, as there was a minor decline in the PMI from 52.8 to 52.7 in April 2017. The report stated that “Subsequent pressure on suppliers meant that delivery times lengthened markedly, exacerbated by stock shortages at vendors. Prices for inputs rose sharply and output charges were raised to the greatest degree for nearly two-and-a-half years”.
Overall, the EURJPY pair remains supported above the 121.30 level, and could trade higher once again.
