Key Points
- The Euro traded lower against the Japanese yen after trading as high as 119.99.
- There EURJPY pair traded lower, and broke a bullish trend line formed on the hourly chart at 119.60.
- Today in the Euro Zone, the Italian Business Confidence was released by the Istat.
- There outcome was positive, as there was a rise in the CPI by 0.1% in Oct 2016, compared with Oct 2015.
EURJPY Technical Analysis
The Euro recently moved above the 120.00 handle against the Japanese yen, but could not hold the bullish momentum, and started to move down. There was a downside move in EURJPY, and the pair broke a bullish trend line formed on the hourly chart.
There was also a close below the 21 hourly simple moving average, which ignited a slide towards 118.80.
The pair is currently correcting lower, but facing sellers near the 50% Fib retracement level of the last decline from the 119.99 high to 118.83 low. Moreover, the broken trend line and the 21 hourly SMA may also act as a resistance.
Italian Business Confidence
Today in the Euro Zone, the Business Confidence, which is a survey of the current business condition in Italy was released by the Istat. The market was not aligned for a decline in Nov 2016.
However, the result was on the lower side, as there was a decline from 103 to 102 in Nov 2016. Similarly. in Italy, the industrial turnover index that measures the monthly evolution of sales by industrial enterprises at current prices was released, which posted a decline of -4.6% in September 2016 compared to the previous month. Overall, the result failed to ignite any positive move for the Euro.
Overall, the EURJPY pair remains a sell as long as there is no proper close above the 120.00 handle.
