- Euro moved down against the Japanese Yen, and looks set for more losses.
- There was a bullish trend line formed on the hourly chart of the EURJPY pair, which was broken to pave the way for more declines.
- Euro Area Unemployment Rate released by the Eurostat registered a decline from the last revised rate of 10.4% to 10.3% in Feb 2016.
- Euro Area Producer Price Index (PPI) was down by 0.7% in Feb 2016, compared with the previous month.
The Euro was down and out against the Japanese yen today, as it fell below the 127.00 level. There was a bullish trend line formed on the hourly chart of the EURJPY pair, which was broken recently to ignite more losses in the near term.
The pair is currently finding bids near the 200 hourly simple moving average. So, there is a chance of the pair correcting a few pips moving ahead.
On the upside, the broken trend line may act as a resistance and could push the pair down.
Euro Area PPI
Earlier today, the Euro Area Producer Price Index (PPI) that measures the change in prices received by domestic producers of commodities was released by the Eurostat. The market was expecting the index to decline by 0.6% in Feb 2016. However, the outcome was disappointing, as there was a decrease of 0.7% in the PPI.
The report highlighted that the “The 0.7% decrease in industrial producer prices in total industry in the euro area in February 2016, compared with January 2016, is due to price falls of 2.1% in the energy sector, of 0.4% for intermediate goods and of 0.2% for non-durable consumer goods, while prices remained stable for capital goods and increased by 0.1% for durable consumer goods. Prices in total industry excluding energy fell by 0.2%”.
Overall, the EURJPY pair may correct a few pips higher, but may resume its downtrend in the short term.