- The Euro climbed towards 122.00 recently against the Japanese Yen before facing resistance.
- The EURJPY pair is currently correcting lower, and following a descending channel with support at 120.50 on the hourly chart.
- The German Retail Sales figure for March 2017 (MoM) released by the Statistisches Bundesamt Deutschland posted a rise of 0.1%, where the market was expecting a decline of 0.3%.
EURJPY Technical Analysis
The Euro remained in the bullish zone against the Japanese Yen until it found resistance near 122.00. The EURJPY traded as high as 121.94 before correcting lower.
It is now following a descending channel with support at 120.50 on the hourly chart, and moved below the 23.6% Fib retracement level of the last wave from the 118.90 low to 121.94 high.
However, the pair is approaching the channel support at 120.60 where it may find buyers.
EURJPY Hourly Chart
The 120.60-50 support is just above the 50% Fib retracement level of the last wave from the 118.90 low to 121.94 high.
So, there is a high possibility of buyers appearing at 120.50 if the pair moves down.
On the upside, a break above 121.30 is needed for a move towards the last swing high at 121.95.
The hourly RSI of EURJPY is heading higher and above 48.
German Retail Sales
Today in the Euro Zone, the German Retail Sales figure for March 2017 (MoM) was released by the Statistisches Bundesamt Deutschland. The market was expecting a decline of 0.3% in March 2017, compared with the previous month.
The actual result was better, as there was a rise of 0.1% in sales in March 2017. When we look at the yearly change, there was a rise of 2.3%, which was a lot more than the forecast of +1.9%.
The report stated that:
Retail turnover of food, beverages and tobacco in March 2017 rose a price-adjusted 0.6%, and a nominal 2.5%, on March 2016. In supermarkets, hypermarkets and consumer markets, turnover was a price-adjusted 0.8%, and a nominal 2.7%, higher than in the same month a year earlier.
Later today, the Euro Zone CPI for April 2017 (Preliminary) will be released by the Eurostat, which is forecasted to increase by 1.8% (YoY), compared with the last +1.5%.
The actual result may impact the EURJPY, and we can see either a bounce from 120.50-60 or a break below it.