EUR/JPY Forecast — Euro Looks Set to Break 131.00 Vs Japanese Yen

  • - The Euro started a nice upside move and traded above the 130.00 level against the Japanese Yen.
  • - There is a key bullish trend line forming with support at 130.40 on the hourly chart of EUR/JPY.
  • - Today in Japan, the Domestic Corporate Goods Price Index for April 2018 was released by the Bank of Japan.
  • - The outcome was around the market forecast as there was a rise in the Domestic Corporate Goods Price Index by 0.1% (MoM).

Japan’s Domestic Corporate Goods Price Index

Today in Japan, Domestic Corporate Goods Price Index for April 2018 was released by the Bank of Japan. The market was looking for a rise of around 0.1% in the index in April 2018, compared with the previous month.

However, the actual result was around the market forecast as there was a rise in the Domestic Corporate Goods Price Index by 0.1%. Looking at the yearly change, there was a rise of 2% in the index, which was same as the forecast, but less than the last +2.1%.

The EUR/JPY pair is currently moving higher and it seems like the pair may rise further above 131.00 in the near term.

EUR/JPY Technical Analysis

The Euro declined below 130.00 this past week against the Japanese Yen. The EUR/JPY pair traded as low as 129.20 before buyers appeared and protected more declines. The pair started an upside move and traded above the 129.50 and 130.00 resistance levels.

EUR/JPY Technical Analysis Euro Japanese Yen

It settled above the 130.00 level and the 100 hourly simple moving average. There was a minor downside correction once, but a key bullish trend line with current support at 130.40 on the hourly chart of EUR/JPY prevented declines.

The pair is now trading higher and is currently above the last swing high at 130.75. It means it may test the 1.236 Fib extension level of the last correction from the 130.76 high to 129.99 low.

The overall bias is very positive and it seems like the pair may rise further above 131.00. It could even test the 1.618 Fib extension level of the last correction from the 130.76 high to 129.99 low at 131.23. On the downside, supports are at 130.40 and the 100 hourly SMA.


Originally published at ForexGator.com.

Like what you read? Give ForexGator.com a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.