- Euro traded down against the Japanese Yen, and it looks like there is more downsides left.
- There was a support trend line formed on the hourly chart, which was broken to ignite a down-move.
- German ZEW Economic Sentiment came in at 1, down from the last reading of 10.2.
- Euro Area ZEW Economic Sentiment was also down from 22.7 to 13.6 in February 2016.
The Euro moved down recently against the Japanese Yen, and once the bearish pressure increased, the EURJPY moved further down. There was a support trend line formed on the hourly chart, which was broken to call for more losses in the near term.
The EURJPY pair also moved below the 50, 100 hourly simple moving average, which means the bearish pressure is a lot more compared with buyer’s sentiment.
On the upside, the broken trend line and the 100 MA may act as a sell zone and resistance area.
German ZEW Economic Sentiment
Today, the German ZEW Economic Sentiment, which measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic was published. The market was expecting a decline from 10.2 to 0 in Feb 2016. However, the German ZEW Economic Sentiment came in at 1.
Moreover, the Euro Area ZEW Economic Sentiment was also down from 22.7 to 13.6 in February 2016. The report added that “Declining expectations may in particular under the Impression of the turbulent start to the year in the capital markets have originated. After a spiral of price decline, regulatory procedures and further price declines on Chinese equity market”.
Overall, the report was not positive, and may weigh on the Euro and the EURJPY pair moving ahead.