Key Points
- The Euro made a nice upside move above the 124.50 resistance against the Japanese Yen.
- There is a major ascending channel with support at 125.05 formed on the hourly chart of EURJPY.
- Today in Japan, the Consumer Confidence for May 2017 was released by the Cabinet Office.
- The outcome was above the forecast, as the Consumer Confidence rose to 43.6 from 43.2.
EURJPY Technical Analysis
The Euro after a sharp decline towards the 123.00-10 support against the Japanese Yen found support. The EURJPY pair formed a base near 123.15 and moved higher. During the upside, the pair broke a major resistance at 124.50, which may now act as a support on the downside.
At the moment, the pair is following a major ascending channel with support at 125.05 on the hourly chart. On the upside, the pair may target the 125.50 resistance, which can be considered as the next major resistance.
On the downside, below the channel support at 125.05, the pair may test the 23.6% Fib retracement level of the last wave from the 123.16 low to 125.26 high. Below 124.75, the 124.50 might hold losses. Furthermore, the 21 hourly simple moving average at 124.65 may also be seen as a support area.
Australia’s HIA New Home Sales
Recently in Japan, the Consumer Confidence for May 2017 was released by the Cabinet Office. The market was positioned for a minor increase of from the last reading of 43.2 to 43.5 in May 2017.
The result was above the forecast, as the Consumer Confidence rose to 43.6 from 43.2. Earlier today, the Monetary Base for May 2017 was released by the Bank of Japan, which posted a reading of 19.4%, compared to the last 19.8%.
Overall, the EURJPY pair may continue to trade higher towards the 125.50 level in the near term.
