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Market Analysis

Home » Technical Analysis » Daily » EURJPY – Euro Under Continuous Bearish Pressure

EURJPY – Euro Under Continuous Bearish Pressure

Posted by FXTimes in Daily - April 8th, 2016 12:31 pm GMT

Euro EURUSD

Key Points

  • The Euro was under a lot of pressure against the Japanese Yen recently, as the latter one gained traction.
  • There is a monster bearish trend line formed on the hourly chart of the EURJPY pair, which is acting as a hurdle for the Euro bulls.
  • Today, the German Trade Balance released by the Statistisches Bundesamt Deutschland posted a positive trade surplus of €19.8B for February 2016.
  • France Industrial Output released by INSEE posted a decline of 1% in February 2016, more than the forecast of -0.5%.

Technical Analysis

The Euro followed a bearish trend against the Japanese Yen, and traded down towards the 122.50 level before starting a recovery. However, the recovery failed around a major bearish trend line on the hourly chart of the EURJPY pair.

EURJPY

Moreover, the 50 hourly simple moving average and the 50% Fib retracement level of the last drop from the 125.31 high to 122.56 low acted as a resistance along with the trend line.

So, the EURJPY pair already started moving down, and we may continue to see more losses in the near term.

German Trade Balance

Today, the Trade Balance, which is a balance between exports and imports of total goods and services was released by the Statistisches Bundesamt Deutschland. The forecast was a trade surplus of €18.5B in Feb 2016. However, the outcome was positive, as there was a trade surplus of €19.8B.

Adding on the release, the report stated, “German exports increased by 4.1% and imports by 4.0% in February 2016 year on year. After calendar and seasonal adjustment, exports increased by 1.3% and imports by 0.4% compared with January 2016“.

Overall, the report was positive, but failed to stop the downside move in the EURJPY pair, so it may continue to trade down.

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