EUR/JPY Forecast — Euro Could Surged Above 130.00 Vs Japanese Yen

  • - The Euro is trading with a bullish bias and is placed nicely above the 129.50 support against the Japanese Yen.
  • - There is a crucial bullish pattern formed with support at 129.75 on the hourly chart of EUR/JPY.
  • - Today in Japan, the Current Account report for May 2018 was released by the Ministry of Finance.
  • - The outcome was above the market forecast of ¥1,240B as there was a trade surplus of ¥1,938B.

Japan’s Current Account

Today in Japan, the Current Account report for May 2018 was released by the Ministry of Finance. The market was looking for a trade surplus of around ¥1,240B in May 2018 compared with the last reading of ¥1,845B.

However, the actual result was above the market forecast of ¥1,240B as there was a trade surplus of ¥1,938B. It was also above the last reading of ¥1,845B. Moreover, the Bank lending figure for June 2018 (YoY) was, released by Bank of Japan. It posted an increase of 2.2%, more than the last 2.0%.

The EUR/JPY pair is currently positioned in the bullish zone and it seems like it may continue to move higher above 130.00 and 130.15 in the near term.

EUR/JPY Technical Analysis

The Euro formed a decent support base above the 128.50 level against the Japanese Yen. The EUR/JPY pair started an upside move, traded above the 129.00 and 129.50 resistance levels, and settled above the 100 hourly simple moving average.

EUR/JPY Technical Analysis Euro Japanese Yen

The pair is currently trading above the 76.4% Fib retracement level of the last decline from the 129.96 high to 129.60 low. It indicates that the pair may perhaps continue to move higher above the 129.96 high in the near term.

The next stop could be the 1.236 Fib extension level of the last decline from the 129.96 high to 129.60 low at 130.04. Above this, the pair could even trade towards the 130.20 level and the 1.618 Fib extension level of the same decline.

Moreover, there is a crucial bullish pattern formed with support at 129.75 on the hourly chart of EUR/JPY. Therefore, dips remain well supported above the 129.75 and 129.60 levels in the near term.


Originally published at ForexGator.com.