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EURJPY – Can Euro Extend Its Upside Break?

Key Points

  • The Euro managed to trade higher versus the Japanese yen, and broke a short-term resistance.
  • There was a bearish trend line formed on the hourly chart of the EURJPY pair, which was broken recently.
  • Today, the German Trade Balance report was released by the Statistisches Bundesamt Deutschland.
  • There was a trade surplus of €22.2B in August 2016, compared with the forecast of €20.0B.

EURJPY Technical Analysis

The Euro after trading as low as 115.05 versus the Japanese yen found buyers and managed to recover. There was an upside move, taking the EURJPY pair above a bearish trend line formed on the hourly chart.

EURJPY Technical Analysis

The pair is also attempting to break the 23.6% Fib retracement level of the last decline from the 116.28 high to 115.05 low. If there is a successful close, then the pair may move towards the 100 hourly simple moving average.

On the downside, the recent low of 115.05 low may continue to act as a major support area.

German Trade Balance

Today in the Euro Zone, the German Trade Balance, which is a balance between exports and imports of total goods and services was released by the Statistisches Bundesamt Deutschland.

The market was expecting a trade surplus of €20.0B in August 2016, but the outcome was positive, as it came in at €22.2B. The report added that “Germany exported goods to the value of 54.3 billion euros to the Member States of the European Union (EU), while it imported goods to the value of 48.5 billion euros from those countries. Compared with August 2015, exports to the EU countries increased by 10.0%, and imports from those countries by 5.2%”.

Overall, the euro made a nice move higher and may continue to gains bids in the short term.

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