EUR/JPY Forecast — Euro Remains in Uptrend Vs Japanese Yen

• - The Euro traded higher and settled above the 131.00 level recently against the Japanese Yen.
• - There is a crucial connecting resistance trend line forming with barrier at 131.60 on the hourly chart of EUR/JPY.
• - Today in Japan, the Trade Balance report for Feb 2018 was released by the Customs Office.
• - The outcome was above the forecast of ¥108.7B as there was a trade surplus of ¥188.7B.

Japan’s Trade Balance

Today in Japan, the Trade Balance report for Feb 2018 was released by the Customs Office. The market was looking for a trade surplus of ¥108.7B in Feb 2018 compared with the last deficit of ¥-666.6B.

However, the actual result was above the forecast of ¥108.7B as there was a trade surplus of ¥188.7B. Looking at the current account in Feb 2018, there was a trade surplus of ¥2,076.0B, a bit less than the last ¥2,160.0B.

The EUR/JPY pair remains in an uptrend above the 131.00 support and it may continue to move higher in the near term.

EUR/JPY Technical Analysis

The Euro started a solid upside wave from the 130.20 swing low against the Japanese Yen. The EUR/JPY pair moved higher and broke a few important hurdles near the 130.80 and 131.00 levels to settle above the 100 hourly simple moving average.

The pair traded as high as 131.31 before starting a downside correction. It declined and tested the 23.6% Fib retracement level of the last wave from the 130.22 low to 131.61 high. However, the decline was protected by the 131.05 and 131.00 levels.

It seems like the pair remains well supported above the 131.00 handle. On the upside, there is a crucial connecting resistance trend line forming with barrier at 131.60 on the hourly chart of EUR/JPY. The pair has to break the 131.60 resistance and the trend line to gain upside momentum.

On the downside, the 131.00 support holds a lot of importance. As long as the pair is above the 131.00 support, it could move higher sooner or later and break the 131.60 resistance in the near term. Above 131.60, the Euro might test the 132.00 level.

Originally published at ForexGator.com.