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EURJPY – Euro To Face Resistance Near 123.00 Vs Japanese Yen

Key Points           

  • The Euro traded lower recently against the Japanese yen, but found support near 122.50-70.
  • The EURJPY pair is once again moving higher, but most likely to face near 123.00, which is positioned around a bearish trend line formed on the hourly chart.
  • In Japan today, the Merchandise Trade Balance Total was released by the Ministry of Finance.
  • The result was on the lower side, as there was a trade surplus of ¥152.5B, less than the forecast of ¥227.4B in Nov 2016.

EURJPY Technical Analysis

The Euro struggled during the past two sessions against the Japanese yen and traded lower towards 122.50 where it found support. The stated level is a major support area, as it acted as a barrier for sellers on many occasions earlier.

EURJPY Technical Analysis

The EURJPY pair is currently bouncing from the highlighted support, but likely to face sellers near 123.00, representing a bearish trend line formed on the hourly chart.

Moreover, the 50% Fib retracement level of the last wave from the 123.61 high to 122.46 low may act as a resistance near the same trend line.

Japanese Merchandise Trade Balance

Today in Japan, the Merchandise Trade Balance Total, which is a measure of balance amount between import and export was released by the Ministry of Finance. The market was positioned for a trade surplus of ¥227.4B in Nov 2016, compared with the last reading of ¥496.2B.

However, the result was on the lower side, as the surplus was ¥152.5B. When we have a look at the Adjusted Merchandise Trade Balance, then there was a trade surplus of ¥536.1B, more than the last reading of ¥474.3B.

Overall, the result was mixed, and failed to help the Japanese yen. We should keep an eye on the trend line resistance at 123.00-10 for the next move in EURJPY.

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