Key Points
- The Euro was seen under bearish pressure recently against the Japanese yen, as it broke the 121.25 support area.
- There are a couple of bearish trend lines on the hourly chart of EURJPY at 121.30, which may continue to act as a resistance.
- Today in Japan, the Labor Cash Earnings was released by the Ministry of Health, Labour and Welfare.
- The result was not encouraging, as there was a rise of 0.1% in the Labor Cash Earnings in Dec 2016.
EURJPY Technical Analysis
The Euro was under selling pressure recently against the Japanese yen, as it declined below 121.30-20 support area. The EURJPY pair is currently poised for more declines may be towards the 1.236 extension of the last wave from the 121.01 low to 122.51 high.
So, the pair is likely to trade lower below 121.00 and trade near 120.66 in the short term. Any corrections may face resistance near a couple of bearish trend lines on the hourly chart of EURJPY at 121.30.
If you are planning to sell, consider it near 121.25 with a stop of a close above the 21 hourly simple moving average or 121.50.
Japanese Labor Cash Earnings
Today during the Asian session, the Japanese Labor Cash Earnings Indicator, which shows the average income, before taxes, per regular employee was released by the Ministry of Health, Labour and Welfare. The market was expecting an increase of more than 0.2% in Dec 2016, compared with the same month a year ago.
However, the result not encouraging, as there was a rise of 0.1% in the Labor Cash Earnings in Dec 2016. Looking at the Japan Overtime Pay, there was a decline of 1.9% in Dec 2016, compared with the same month a year ago. It was lower when compared with the last decline of 1.3%.
However, the Japanese yen was unfazed, and it looks like the EURJPY pair may continue to trade lower towards 120.60.
