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Sep 29, 2016

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Market Analysis

Home » Featured » EURJPY Heading Towards Major Support

EURJPY Heading Towards Major Support

Posted by FXTimes in Featured - March 4th, 2016 2:00 pm GMT

euro eurusd eurchf

Key Points

  • Euro after trading as high as 123.06 against the Japanese Yen found sellers and started to move down.
  • There is a bullish trend line formed on the hourly chart of EURJPY, which may act as a support for the pair.
  • Italian Gross Domestic Product released by the National Institute of Statistics posted a rise of 0.1% in Q4 2015, just as the market expected.
  • US nonfarm payrolls released by the US Department of Labor today posted a rise of 242K jobs in Feb 2016, which was more than the forecast.

Technical Analysis

The Euro enjoyed gains against the Japanese Yen recently, and traded above 123.00. However, it is now correcting lower, and heading towards a bullish trend line formed on the hourly chart of EURJPY, which may act as a support for the pair.

EURJPY

The highlighted trend line and support area holds the key in the near term, and if all goes well it should act as a buy zone for the bulls.

On the downside, a break below the trend line may take the pair towards the 100 hourly simple moving average.

US NFP

There was a major release in the US today, as the nonfarm payrolls, which presents the number of new jobs created during the previous month, in all non-agricultural business was released by the US Department of Labor. The outcome was way above the forecast, as the US NFP came in at 242K in Feb 2016, more than the forecast of 190K.

The report stated ‘Total nonfarm payroll employment increased by 242,000 in February, and the unemployment rate was unchanged at 4.9 percent, the U.S. Bureau of Labor Statistics reported today. Employment gains occurred in health care and social assistance, retail trade, food services and drinking places, and private educational services. Job losses continued in mining”.

Overall, the market sentiment changed after the release, and it may be possible that the EURJPY pair could break the trend line support area.

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