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Home » Technical Analysis » Daily » EURJPY – Is This Start Of A Downtrend For Euro?

EURJPY – Is This Start Of A Downtrend For Euro?

Posted by FXTimes in Daily - September 6th, 2016 8:49 am GMT

euro EURUSD eurjpy eurcad

Key Points

  • The Euro after posting a new high of 116.36 versus the Japanese yen found sellers and moved down.
  • The Euro sellers managed to break a bullish trend line formed on the hourly chart of the EURJPY pair.
  • The German Factory orders report was released by the Deutsche Bundesbank.
  • The forecast was lined up for an increase of 0.5% in July 2016, but it came in at 0.2%.

EURJPY Technical Analysis

The Euro traded positively recently and traded as high as 116.36 versus the Japanese yen where sellers appeared. The EURJPY pair started moving lower, and also broke a bullish trend line formed on the hourly chart.

EURJPY Technical Analysis

The pair traded as low as 115.11 and attempted a recovery. However, the broke 21 hourly simple moving average acted as a resistance and prevented any further recovery.

On the downside, the pair may break the recent low of 115.11 and could test the all-important 115.00 handle. The hourly RSI is also below the 50 level, which is a bearish sign for the bulls.

German Factory Orders

Today during the London session, the German Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank.

The forecast was lined up for an increase of 0.5% in July 2016, compared with the previous month. However, the outcome was on the lower side, as there was a rise of 0.2%. The report added that the “price-adjusted new orders in manufacturing had increased in July 2016 a seasonally and working-day adjusted 0.2% on June 2016. For June 2016, revision of the preliminary outcome resulted in a decrease of 0.3% compared with May 2016”.

Overall, the Euro may remain under a bearish pressure versus the Japanese yen, and could head towards the 115.00 handle.

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