- The Euro declined heavily recently and moved below 130.00 against the Japanese Yen.
- The EURJPY pair broke a major descending channel pattern with support at 129.75 on the hourly chart.
- Today in Japan, the Machine Tool Orders (Prelim) report for July 2017 was released by the Japan Machine Tool Builders” Association.
- The outcome was below the forecast, as there was an increase of 26.3%, less than the last 31.1% (YoY).
EURJPY Technical Analysis
The Euro after forming a top near the 131.30 level, declined heavily and moved below 130.00 against the Japanese Yen. The price broke the 21 hourly simple moving average and the 129.00 level for a move towards the 128.70 level.
The pair even broke a major descending channel pattern with support at 129.75 on the hourly chart. It recently corrected higher towards the 23.6% Fib retracement level of the last decline from the 130.82 high to 128.69 low where it faced sellers.
The pair is resuming its downtrend and looks set to trade towards 128.50 in the near term.
Japan’s Machine Tool Orders
Today in Japan, the Machine Tool Orders (Prelim) report for July 2017 was released by the Japan Machine Tool Builders” Association. The market was positioned for an increase of more than 28% in July 2017 compared with the same month a year ago.
The actual result was below the forecast, as there was an increase of 26.3%. In terms of the monthly change, the Machine Tool Orders posted an increase of 10.1% in July 2017, compared with the previous month. The report added that:
Domestic orders rose by 7.1% over May, amounting to 54.69 billion yen. This marked the two consecutive month of month-on-month growth. Moreover, this figure was a growth of 7.8% over the same month of the previous year and marked the five consecutive month of year-on-year increase.
Overall, the EURJPY pair remains in a downtrend and might soon break the last swing low of 128.69 for more declines.