EUR/JPY Forecast — Euro Could Decline Further Vs Japanese Yen
- - The Euro declined recently and traded below the 131.00 support against the Japanese Yen.
- - There is a major bearish trend line forming with resistance at 130.25 on the hourly chart of EUR/JPY.
- - Today in Japan, the Nikkei Manufacturing PMI for Feb 2018 was released.
- - The outcome was above the forecast of 54.0 as there was a rise in the PMI from 54.0 to 54.1.
Japan’s Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for Feb 2018 was released. The market was looking for no change in the PMI from the last reading of 54.0 in Feb 2018.
However, the actual result was above the forecast of 54.0 as there was a rise in the PMI from 54.0 to 54.1. Moreover, the Capital Spending report for Q4 2017 was released by the Ministry of Finance Japan. The market was looking for a rise of 3.1% in the Capital Spending, but the result was positive, as there was a rise of 4.3% in the Capital Spending in Q4 2017, which was also more than the last +4.2%.
The EUR/JPY pair may correct a few pips higher in the short term, but it is likely to face sellers on the upside near 130.25 and 130.50.
EUR/JPY Technical Analysis
The Euro started a new downside wave from well above the 131.50 level against the Japanese Yen. The EUR/JPY pair traded lower and broke a couple of important support levels such as 131.20, 131.00 and 130.50.
The pair even traded below the 130.00 level and settled below the 100 hourly simple moving average. A low was formed at 129.84 from where the pair started an upside correction. It is back above the 130.00 level, but there are many resistances on the upside.
First, there is a major bearish trend line forming with resistance at 130.25 on the hourly chart of EUR/JPY. The next resistance is near the 23.6% Fib retracement level of the last decline from the 132.18 high to 129.84 low.
There can be a minor upside correction in EUR/JPY in the near term, but the pair is likely to face hurdles near the 130.25 and 130.50 levels.
Originally published at — ForexGator.com.