Key Highlights
- The Euro faced a lot of offers near 133.00 against the Japanese Yen, and started a downside move.
- There is a major bearish trend line forming with resistance at 132.40 on the 4-hours chart of EUR/JPY.
- Euro Area’s Retail Sales in Sep 2017 increased 0.7% (MoM), more than the forecast of +0.6%.
- Spain’s Industrial Output Cal Adjusted for Sep 2017 will be released today, which is forecasted to increase by 3.2% (YoY).
EURJPY Technical Analysis
The Euro failed to move above the 133.00 resistance zone against the Japanese Yen. The EUR/JPY is under pressure and eyeing further declines toward 131.50.
Looking at the 4-hours chart, the pair recently failed to break a major bearish trend line with current resistance at 132.40. Both the 100 (red) and 200 (green) simple moving averages (H4) acted as a key resistance near 132.85.
The pair also failed to settle above the 50% Fib retracement level of the last drop from the 134.49 high to 131.45 low.
Therefore, it seems like the pair has completed a correction near 133.00 and it will most likely head back towards 131.50 or even test 130.00.
Euro Area Retail Sales
Recently in the Euro Area, the Retail Sales report for Sep 2017 was released by the Eurostat. The market was looking for an increase of 0.6% in sales compared with the previous month.
The actual result was better than the forecast, as there was a rise of 0.7% in sales. Looking at the yearly change in Sep 2017, there was a rise of 3.7% in sales, more than the forecast of 2.7%.
The report added:
The 0.7% increase in the volume of retail trade in the euro area in September 2017, compared with August 2017, is due to rises of 1.3% for “Food, drinks and tobacco” and of 0.5% for non-food products, while automotive fuel fell by 0.4%.
The Euro and EUR/JPY pair remains in the bearish zone, and the latter one can even trade towards 131.50 in the near term.
Economic Releases to Watch Today
France Trade Balance for Sep 2017 – Forecast €-4.8B, versus €-4.5B previous.
Spain’s Industrial Output Cal Adjusted for Sep 2017 (YoY) – Forecast +3.2%, versus +1.8% previous.
Canada’s Housing Starts s.a. for Oct 2017 (YoY) – Forecast 210.0K, versus 217.1K previous.
