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Dec 10, 2016

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Market Analysis

Home » Featured » EURJPY Facing Tough Resistance

EURJPY Facing Tough Resistance

Posted by FXTimes in Featured - March 21st, 2016 1:22 pm GMT

euro eurusd euraud

Key Points

  • Euro traded a couple of times towards the 125.20-30 support area against the Japanese Yen and found bids.
  • The EURJPY pair is currently correcting higher, but facing a major resistance near a bearish trend line formed on the hourly chart.
  • Euro Area Current Account released by European Central Bank registered a trade surplus of €25.4B in Jan 2016.
  • The Euro Area Current Account in non-seasonally adjusted terms came in at €6.3B.

Technical Analysis

The Euro faced a lot of selling pressure lately against the Japanese yen, as the EURJPY pair traded lower a couple of times to test the 125.20 support area. The pair is currently trading higher, but facing a resistance near a bearish trend line formed on the hourly chart.

EURJPY

The pair is also below the 100 hourly simple moving average, which is positioned near the trend line resistance. In short, there is a major barrier near 125.90-126.00.

If the bulls can manage to break it, then the EURJPY pair could head towards 126.50.

Euro Area Current Account

Today, the Euro Zone Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by the European Central Bank. The forecast was lined up for €26.3B, but the trade surplus was €25.4B in Jan 2016 in seasonally adjusted terms.

The report stated that “current account of the euro area recorded a surplus of €25.4 billion in January 2016 (see Table 1). This reflected surpluses for goods (€27.6 billion), primary income (€4.7 billion) and services (€3.6 billion), which were partly offset by a deficit in secondary income (€10.5 billion)”.

Overall, the EURJPY pair is facing a major hurdle. A break above it may open the doors for more gains.

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