- Euro surged higher against the Japanese Yen, but it is trading near a monster resistance area.
- 200 hourly simple moving average along with a bearish trend line on the hourly chart acted as a barrier.
- German Industrial Production was reported today, which decreased by 1.1% in September 2015, whereas the market was expecting +0.5%.
- French Trade Balance reported by MINEFA came in at €-3.38B v/s the forecast of €-3.10B in September 2015.
There was a nice upside reaction in the EURJPY pair recently taking the pair above the 50 hourly simple moving average. However, there is a monster resistance forming near the 100 and 200 hourly MA’s. The highlighted confluence area holds a lot of importance, as there is a bearish trend line positioned around it.
This is not all, the 50% Fib retracement level of the last drop from the 133.39 high to 131.85 low is aligned perfectly with the trend line and resistance area.
Overall, the 132.60-70 area holds the key for EURJPY in the near term and might stall gain moving ahead.
Today, the Euro traders were looking for some relief in terms of the economic data, but there were none. The German Industrial Production that helps in evaluating outputs of the German factories was published by the Statistisches Bundesamt Deutschland. The market was positioned for a rise of 0.5% in September 2015. The result failed to fulfil the expectation, as the production fell by 1.1%, compared with the preceding month.
The Euro traders were disappointed with the outcome, which means there might be some bearish pressure on the shared currency moving ahead.
The EURJPY pair is trading near major pivot area, and this might give a reason to sellers to take the pair lower in the near term.