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EURJPY – Can Euro Make It?

Key Points

  • Euro traded back sharply against the Japanese Yen to move above the 128.00 level.
  • EURJPY pair traded above the 100 hourly simple moving average, which is a positive sign.
  • France PMI monthly Composite Reports on Manufacturing and Services, released by Markit Economics posted an increase from the last reading of 50.1 to 50.5 in January 2016.
  • German Services PMI on the other hand posted a decline from the last reading of 56.0 to 55.4 in Jan 2016.

Technical Analysis

The EURJPY pair jumped sharply higher after testing the 126.16 level. The pair also closed above the 100, 200 and 50 hourly simple moving average, which is a bullish sign. There is a bearish trend line on the hourly chart, which may be seen as a resistance moving ahead.

EURJPY

A break above the highlighted trend line and resistance area may call for more gains in the near term.

The hourly RSI is above the 50 level, suggesting an upside move if buyers remain in action.

German Services PMI

Today, the German Services PMI, which is an indicator of the economic situation in the Germany services sector was released by the Markit Economics. The forecast was slated for a decline from the last reading of 56.0 to 55.6 in Jan 2016. However, the result was disappointing, as the German Services PMI decreased to 55.4.

The report added that “survey data signalled that Germany’s labour market continued to strengthen at the beginning of the year. Employment rose for the twenty-seventh successive month, although the rate of job creation slowed marginally since December. Companies hired additional workers in order to increase capacity in the light of rising workloads, according to panel evidence”.

Overall, the reports were mixed, but there is a chance of the Euro gaining traction in the near term.

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