Key Points
- The Euro failed to recover from the 115.93 low against the Japanese yen, and remains at a risk of more declines.
- The EURJPY faced a bearish trend line with resistance at 116.45 on the hourly chart.
- Today in the Euro Zone, the Germany consumer price index for March 2017 was released by the Statistisches Bundesamt Deutschland.
- The outcome was in line with the forecast, as there was a rise of 1.6% in the CPI in March 2017 (YoY).
EURJPY Technical Analysis
The Euro remained above the 116.00 support area for some time against the Japanese yen, and then started an upside move. It crawled above the 23.6% Fib retracement level of the last decline from the 117.46 high to 115.93 low.
However, the upside failed near a bearish trend line with resistance at 116.45 on the hourly chart. Moreover, the 38.2% Fib retracement level of the last decline from the 117.46 high to 115.93 low also acted as a hurdle for more gains.
As a result, the pair is once again down, and looks set to break the 115.93 low for further downsides in the near term.
Germany Consumer Price Index
Recently in the Euro Zone, Germany consumer price index for March 2017 was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a rise of 1.6% in the CPI in March 2017, compared with the same month a year ago.
The result was in line with the forecast, as there was a rise of 1.6% in the CPI in March 2017 (YoY). The report stated that “Food prices, too, were higher (+2.3%) in March 2017 than in March 2016. In February 2017, the rate of food price increase had been +4.4%. In March 2017, a considerable year-on-year increase in prices was recorded especially for edible fats and oils (+16.5%, including butter: +33.8%)”.
Overall, the result was neutral, and may not help EURJPY in staying above the 115.95 support area in the short term.
