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EURJPY – Euro Heading Lower?

Key Points

  • Euro came under bearish pressure today against the Japanese yen, and it may head lower.
  • The EURJPY pair settled below the 100 hourly simple moving average, which is a bearish sign and calling for more losses.
  • Euro Zone PMI service released by the Markit Economics posted no change from 53.6 in Jan 2016.
  • The Euro traded higher against the US dollar, but failed to move higher against the yen.

Technical Analysis

The Euro moved lower today against the Japanese Yen, as the latter one gained traction. The EURJPY pair broke a major support trend line on the hourly chart, and even settled below the 100 hourly simple moving average.

EURJPY

There is a bearish trend line as well on the upside that can be seen as a sell zone. The 100 and 50 hourly simple moving average may also act as a resistance. So, selling rallies can be opted.

On the downside, the next area to target can be the 200 hourly simple moving average.

Euro Zone Services PMI

Today, there were a couple of economic releases in the Euro Zone like the PMI service, which is an indicator of the economic situation in the Euro Zone services sector was reported by the Markit Economics. The market was not expecting any change in the PMI, and the result was as expected. There was no change from 53.6 in Jan 2016.

The report stated that “January saw the rate of output growth ease to one of the weakest over the past year. Slower expansions were signaled in both the manufacturing and service sectors, while national PMI data saw growth ease in Germany and Italy. France remained close to stagnation“.

Overall, the EURJPY pair remain weak, and there is a chance of it moving down in the near term.

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