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Market Analysis

Home » Technical Analysis » Daily » EURJPY – Is This Recovery True For Euro?

EURJPY – Is This Recovery True For Euro?

Posted by FXTimes in Daily - June 29th, 2016 12:09 pm GMT

euro eurusd

Key Points

  • Euro after collapsing against the Japanese yen found support near 109.50 and started recovering.
  • There is a bullish trend line formed on the hourly chart of the EURJPY, which is currently acting as a support area.
  • Euro Zone Economic Confidence released by the European Commission posted a decline from 104.6 to 104.4 in June 2016.
  • The Services sentiment indicator was also down from the last reading of 11.3 to 10.8 in June 2016.

Technical Analysis

The Euro after collapse versus the Japanese yen towards 109.50 started to gain bids and recovered. The EURJPY pair is currently following a bullish trend line formed on the hourly chart, which is acting as a catalyst for a recovery.

EURJPY

However, the pair is closing in towards the 100 hourly simple moving average, which may stall the upside move.

So, we need to monitor the 100 hourly SMA on the upside, and on the downside the trend line support holds the key.

Euro Zone Economic Confidence

In the Euro Zone today, the Economic Confidence, which is a survey of consumers confidence in economic activity and indicates the trend of the overall Euro Zone economy was released by the European Commission. The market was expecting a reading of 104.7, but the result was negative as there was a decline from 104.6 to 104.4 in June 2016.

The report added that “In June, after two consecutive months of improved readings, the Economic Sentiment Indicator (ESI) remained broadly unchanged in both the euro area (-0.2 points to 104.4) and the EU (+0.1 points to 105.7)”.

There was hardly any good news from the Euro Zone, so one needs to be very careful while buying EURJPY in the short term.

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