- The Euro tumbled vs the Japanese yen recently and closed below a major support area of 122.40.
- There is a bearish breakout pattern forming on the hourly chart of the EURJPY pair, which may ignite more losses moving ahead.
- Euro Area Producer Price Index (PPI) released by the Eurostat posted a decline of 0.3% in April 2016, whereas the market was expecting a rise of 0.1%.
- In terms of the yearly change, the Producer Price Index (PPI) declined by 4.4% in April 2016.
The Euro crashed recently vs the Japanese yen, and traded below the 100 and 200 hourly simple moving average. The downside move was convincing and a signal of more losses in the near term. Currently, the EURJPY pair is forming a bearish breakout pattern on the hourly chart, which can pave the way for another downside move.
A break below the triangle pattern can take the pair towards the 121.60 level.
On the upside, the triangle upper trend line may act as a barrier and selling zone for the Euro sellers.
Euro Area PPI
Today, the Euro Area Producer Price Index (PPI), which is an index that measures the change in prices received by domestic producers of commodities was released by the Eurostat. The market was expecting a rise of 0.1% in the PPI in April 2016. However, the result was disappointing, as there was a decline of 0.3%.
The report added that the “0.3% decrease in industrial producer prices in total industry in the euro area in April 2016, compared with March 2016, is due to price falls of 1.1% in the energy sector and of 0.1% for non-durable consumer goods“.
In short, the report was not positive, and ignited more pressure on the Euro buyers which could result in a downside move in EURJPY.