- The Euro after tumbling vs the Japanese Yen found support near 122.40 and currently attempting to trade higher.
- There is a flag pattern formed on the hourly chart of the EURJPY pair, which may provide us the next break.
- German business sentiment index released by the CESifo Group posted a rise from the last revised reading of 106.7 to 107.7 in May 2016.
- German GfK Consumer Confidence also posted an increase from 9.7 to 9.8 for June 2016.
The Euro is showing some positive signs vs the Japanese yen after declining sharply towards the 122.40 area. The EURJPY pair is currently attempting to recover, and forming a flag pattern on the hourly chart.
If the Euro bulls manage to break the flag pattern, then there is a chance of EURJPY heading towards the 100 hourly simple moving average.
If the Euro buyers fail to take the pair higher, then a break below it could take EURJPY below the 122.20 support area.
German IFO Business Climate Index
Today, the German business sentiment index, which is closely watched as an early indicator of current conditions and business expectations in Germany was released by the CESifo Group. The forecast is slated for a minor rise from 106.6 to 106.8 in May 2016.
The outcome was positive, as the German business sentiment index posted an increase to 107.7, plus the last reading was revised to 106.7. The report added that “In manufacturing the business climate has improved for the third consecutive time. The companies assessed their situation somewhat more favorably. Their expectations brightened noticeably, and production plans remain expansionary”.
The Euro is gaining pace after the releases in the Euro Zone, but we need to see if it can break the flag resistance or not for more gains.