- The Euro after trading above 130.50 found sellers and started a downside move against the Japanese Yen.
- The EURJPY pair broke a major ascending channel with support at 130.20 on the hourly chart.
- Today in Japan, the Industrial Production for May 2017 was released by the Ministry of Economy, Trade and Industry.
- The result was below the forecast of -3.3%, as there was a decline of 3.6% (MoM).
EUR/JPY Technical Analysis
The Euro remained in a crucial uptrend and traded above the 130.00 handle against the Japanese Yen. The EUR/JPY pair even broke the 130.50 level, but failed to bypass the 130.75 level and started a downside move.
During the downside move, the pair broke a major ascending channel with support at 130.20 on the hourly chart.
The pair also managed to settle below a key support area at 129.50, which is currently acting as a resistance.
EURJPY Hourly Chart
Recently the pair moved higher from 128.47 and broke a bearish trend line at 129.25, but it is struggling to settle above the 38.2% Fib retracement level of the last decline from the 130.75 high to 128.47 low.
The pair is consolidating above the broken trend line, but remains at risk as long as it is below 129.50.
Only a close above 129.50 might open the doors for a run towards the 130.00 handle in the near term.
Japan’s Industrial Production
Today in Japan, the Industrial Production for May 2017 was released by the Ministry of Economy, Trade and Industry. The market was expecting the Industrial Production to decline by 3.3% compared with the previous month.
The actual result was below the forecast of -3.3%, as there was a decline of 3.6%. In terms of the yearly change, there was an increase of 6.5% in the Production, but it was lower compared with the last +6.8%.
Looking at the Capacity Utilization, there was a decline of 4.1%, which was disappointing compared with the last increase of 4.3%.
Overall, the EUR/JPY pair may continue to face sellers near 129.50 and could test the last swing low of 129.00 in the near term.