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Sep 25, 2016

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Home » Technical Analysis » Daily » EURJPY – Can The 100 MA Hold?

EURJPY – Can The 100 MA Hold?

Posted by FXTimes in Daily - January 26th, 2016 9:28 am GMT

Euro_cog_1

Key Points

  • Euro moved down Intraday against the Japanese Yen, and broke a contracting triangle pattern on the hourly chart.
  • The EURJPY pair is finding buyers near the 200 and 100 hourly simple moving average.
  • Earlier today, the Japanese Corporate Service Price Index (CSPI) was released by the Bank of Japan.
  • The outcome was positive, as the Japanese Corporate Service Price Index (CSPI) rose 0.4% in Dec 2015, compared with the same month a year ago.

Technical Analysis

The EURJPY after a slow ride towards the 128.50 level found sellers, and started to move down. Sellers managed to clear a contracting triangle pattern on the hourly chart, which has opened the doors for more downsides if buyers continue to struggle.

EURJPY

The pair is currently finding buyers near the 200 and 100 hourly simple moving average, which holds the key in the near term. A break and close below 100 MA may call for a move towards the 127.40 level.

On the upside, the 50 hourly simple moving average may be seen as a resistance, followed by the broken support trend line.

Japanese Corporate Service Price Index (CSPI)

Earlier today, the Japanese Corporate Service Price Index (CSPI), which measures the prices of services traded among companies was released by the Bank of Japan. The result was above the forecast, as the Japanese Corporate Service Price Index (CSPI) rose 0.4% in Dec 2015, compared with the same month a year ago.

The Japanese Yen also traded higher against the US Dollar during the Asian session, and it looks like there is more upside left in the Yen.

If the EURJPY pair sellers manage to break the 200 and 100 hourly simple moving average, then there are chances of more losses in the short term.

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