- The Euro traded higher vs the Japanese Yen recently, and it may continue to trade higher.
- There was a bearish trend line break noted on the hourly chart of the EURJPY pair, which opened the doors for more gains.
- German Producer Price Index released by the Statistisches Bundesamt Deutschland posted a decline of 3.1% in April 2016, which was more than the forecast of -3%.
- In terms of the monthly change, there was a rise of 0.1%, compared with the forecast of 0.2%.
The Euro managed to gain higher vs the Japanese Yen and settled above the 100 hourly simple moving average. Moreover, the EURJPY pair also broke a bearish trend line on the hourly chart.
After the break, the pair traded as high as 123.88 where it found sellers, and currently moving down. The pair is currently trading near the 200 hourly simple moving average, which is acting as a support area.
On the upside, a break above the last swing high of 123.88 may open the doors for more upsides in the near term.
Today, the German Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The market was expecting a decline of 3% in April 2016, compared with April 2015. However, the outcome was disappointing, as the German PPI declined by 3.1%.
The report added that “In April 2016 energy prices decreased by 8.8% compared with April 2015, prices of intermediate goods by 2.6% and prices of non-durable consumer goods by 0.4%. In contrast prices of capital goods rose by 0.6% and prices of durable consumer goods by 1.3%”.
In short, one may consider buying the EURJPY pair, as long as it is above the 200 hourly simple moving average.