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EURJPY – Can Euro Break This Vs Japanese Yen?

Key Points

  • The Euro after trading as low as 129.47 started a recovery against the Japanese Yen.
  • There is a crucial bearish trend line with resistance at 130.30 on the hourly chart of EURJPY, which is preventing an upside break.
  • Recently in Japan, the Machinery New orders figure for July 2017 was released by the Cabinet Office.
  • The outcome was below the forecast of -7.3%, as there was a decline in orders by 7.5% (YoY).

EURJPY Technical Analysis

The Euro declined this past week and tested the 129.40-50 support area against the Japanese Yen. Later, the EURJPY pair started a correction and moved above the 23.6% Fib retracement level of the last decline from the 131.09 high to 129.47 low.

EURJPY Technical Analysis

The pair also climbed above the 130.00 resistance and the 21 hourly simple moving average. However, there is a crucial bearish trend line with resistance at 130.30 on the hourly chart of EURJPY. The trend line along with the 50% Fib retracement level of the last decline from the 131.09 high to 129.47 low are preventing further gains.

As long as there is no close above the 130.30, the pair might move back towards 130.00.

Japan’s Machinery New Orders

Today in Japan, the Machinery New orders figure for July 2017 was released by the Cabinet Office. The market was positioned for a decline of 7.3% compared with the same month a year ago.

The actual result was below the forecast of -7.3%, as there was a decline in orders by 7.5%, but it was not good compared with the last -5.2%. Looking at the monthly change, the market was positioned for a rise of 4.4%. However, the actual was a lot better, as there was an increase of 8% in orders.

Overall, the EURJPY pair might continue to struggle to clear the 130.30 resistance area in the near term.

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