- Euro after spiking higher towards 134.50 against the Japanese yen, found sellers and currently moving lower.
- A major support trend line was cleared by sellers recently, suggesting more losses ahead.
- German Industrial Production released by the Statistisches Bundesamt Deutschland posted an increase of 0.2% in October 2015, compared with the forecast of 0.7%.
- Japanese Coincident Index released by the Cabinet Office registered an increase from the last reading of 112.3 to 114.3 in October 2015.
The EURJPY pair enjoyed healthy gains this past week, and traded above the 134.00 area. The pair traded as high as 134.58, and after completing a wave started to move lower.
There was a bullish trend line formed on the hourly chart of EURJPY, which was broken by sellers during the recent downside drift. The pair also settled below the 23.6% Fib retracement level of the last move from the 129.88 low, which is a bearish sign.
Overall, the pair may continue lower towards the 38.2% Fib level if sellers remain in control.
German Industrial Production
Today, the German Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland. The forecast was of an increase of 0.7% in October 2015, compared with the preceding month. However, the outcome was a bit disappointing, as the rise in production was only 0.2%.
In terms of the yearly change, there was no change in the German Industrial Production, which was another disappointing figure. The report stated that “within industry, the production of capital goods increased 2.7%. The production of intermediate goods decreased 1.1% and the production consumer goods 0.1%. Energy production was down 5.9% on the previous month while production in construction was up 0.7%”.
Overall, there is a lot of bearish pressure on the EURJPY pair that has potential to take it lower moving ahead.