Key Points
- The Euro made a downside move recently and remains below 133.30 against the Japanese Yen.
- There was a break below a contracting triangle with support at 132.65 on the hourly chart of EURJPY.
- Recently in Japan, the Monetary Base report for Sep 2017 was released by the Bank of Japan.
- The outcome was below the forecast of 17.2%, as there was a rise of 15.6% in the Monetary Base.
EURJPY Technical Analysis
The Euro started a decent recovery from the 131.80 swing low against the Japanese Yen. The EURJPY pair traded towards 133.15 and moved above the 21 hourly simple moving average. However, the Euro buyers failed to hold gains and the pair moved down below 133.00.
During the downside, the pair broke a contracting triangle with support at 132.65 on the hourly chart and traded towards 132.20. It is currently correcting higher and moved above the 23.6% Fib retracement level of the last decline from the 133.14 high to 132.21 low.
On the upside, the 21 hourly simple moving average is waiting around the 50% Fib retracement level of the last decline from the 133.14 high to 132.21 low near 132.70 to act as resistance and sell zone.
Japan’s Monetary Base
Recently in Japan, the Monetary Base report for Sep 2017 was released by the Bank of Japan. The market was positioned for a rise of 17.2% compared with the same month a year ago.
The actual result was below the forecast of 17.2%, as there was a rise of 15.6% in the Monetary Base. The bank notes in circulation were higher by 4.6% and coins in circulation were +1.2% compared with the same month a year ago.
Overall, the EURJPY pair remains in a downtrend and it might soon break the 132.20 support for more declines.
