EURJPY: Euro Looks To Extend Losses Vs Japanese Yen
Titan FX | Jan 23, 2017 09:17PM ET
Key Highlights
· The Euro recently failed near 122.80-123.00 against the Japanese yen, and moved down.
· There was a connecting bearish trend line on the 4-hours chart of EUR/JPY at 122.65, which acted as a resistance.
· The pair is also below the 100 and 200 simple moving average (H4), signaling more declines.
· In the Euro Zone today, the Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics, which is forecasted to remain at 54.9 in Jan 2017 (preliminary).
EUR/JPY Technical Analysis
The Euro gained this past week against the Japanese yen to trade near 123.00. However, the EUR/JPY pair later found offers, traded lower, and now looks set for more declines.
The failure in EUR/JPY was around a bearish trend line on the 4-hours chart at 122.65. Moreover, the 76.4% fib retracement level of the last decline from the 123.72 high to 120.54 low also acted as a hurdle.
The pair moved down, and also closed below the 100 and 200 simple moving average (H4). It is not a good sign, and if the pair fails to recover, there are chances of more declines in the short term towards 121.00.
There is also a major bearish trend line on the upside around 123.00-123.20, which may act as another barrier if the pair manages to break the first bearish trend line. Overall, the pair remains below a couple of important resistances like 122.80, 123.00 and 123.20.
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