Euro Dollar Japanese Yen

EUR/JPY Analysis – Euro Looks Set To Break 128.80 Vs Japanese Yen

  • The Euro traded higher recently and moved above 128.00 handle against the Japanese Yen.
  • The EURJPY pair broke a short-term bearish trend line with resistance at 128.40 on the hourly chart.
  • Today in Japan, the Tankan Large All Industry Capital Expenditure for Q2 2017 was released by the Bank of Japan.
  • The result was positive, as there was a rise of 8% in the Tankan Large All Industry Capital Expenditure compared with the forecast of 7.4%.

EUR/JPY Technical Analysis

The Euro started an uptrend from the 124.00 handle against the Japanese Yen and moved sharply higher. The EUR/JPY pair broke the 125.00 and 127.00 handles to set the pace for more gains.

During the upside move, the pair traded above 128.00 and formed a high at 128.82. Later, the pair started a correction and below the 23.6% Fib retracement level of the last wave from the 126.46 low to 128.82 high.

The pair declined below 128.00, but was able to move back higher.

EURJPY Hourly Chart

EUR/JPY Technical Analysis

There was a spike below the 50% Fib retracement level of the last wave from the 126.46 low to 128.82 high.

However, a bullish trend line on the hourly chart protected declines and pushed the pair back above 128.00.

Recently, the pair broke a short-term bearish trend line with resistance at 128.40. It has opened the doors for more gains, and the pair might soon break 128.80.

Japan’s Tankan Large All Industry Capital Expenditure

Today in Japan, the Tankan Large All Industry Capital Expenditure for Q2 2017 was released by the Bank of Japan. The market was expecting the Capital Expenditure to increase by 7.4% in Q2 2017, compared with the last +0.6%.

The actual result was better than the forecast, as there was a rise of 8% in the Tankan Large All Industry Capital Expenditure. The Tankan Non-Manufacturing Index posted an in line forecast reading of 23.

On the other hand, the Tankan Non-manufacturing Outlook posted a rise from 16 to 18 in Q2 2017, which was lower than the forecast of 20.

Overall, the EUR/JPY pair may continue to move higher and could even break 128.80 for a move above 129.00.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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