Key Highlights
- The Euro is trading in a broad range above the 131.20 support area against the Japanese Yen.
- There is a crucial bearish trend line forming with resistance at 133.25 on the 4-hours chart of EUR/JPY.
- Japan’s Retail Trade in Oct 2017 was unchanged, whereas the market was looking for a 0.2% rise (MoM).
- The US GDP figure for Q3 2017 will be released today, which is forecasted to grow by 3.2%.
EURJPY Technical Analysis
The Euro struggled to remain above the 133.00 handle against the Japanese Yen. The EUR/JPY pair moved down and remains at a risk of more declines toward 131.40.
Looking at the 4-hours chart of EUR/JPY, there is a crucial bearish trend line forming with resistance at 133.25. The pair recently traded as high as 133.23 and started a downside move. It traded below the 38.2% Fib retracement level of the last wave from the 131.22 low to 133.23 high.
On the downside, there is a major support forming near 132.40 and 131.20. It seems like the pair might continue to trade in a range above the mentioned support levels. On the upside, the pair needs to break the trend line resistance at 133.25-30 to gain bullish traction. On the flip side, a break below 131.00 could ignite further losses in the near term.
Japan’s Retail Trade
Recently in Japan, the Retail Trade for Oct 2017 was released by the Ministry of Economy, Trade and Industry. The market was looking for a rise of 0.2% in Oct 2017 compared with the previous month.
However, the actual result was on the lower side as there was no change in the Retail Trade in Oct 2017. In terms of the yearly change, there was a decline of 0.2%, which was disappointing when compared to the last revised increase of 2.3%.
Overall, the result was negative and might help EUR/JPY in the short term.
Economic Releases to Watch Today
Euro Zone Consumer Confidence Nov 2017 – Forecast 0.1, versus 0.1 previous.
Euro Zone Services Sentiment Nov 2017 – Forecast 16.8, versus 16.2 previous.
Euro Zone Industrial Confidence Nov 2017 – Forecast 8.7, versus 7.9 previous.
Euro Zone Economic Sentiment Indicator Nov 2017 – Forecast 114.6, versus 114.0 previous.
German Consumer Price Index for Nov 2017 (YoY) (Prelim) – Forecast +1.7%, versus +1.6% previous.
German Consumer Price Index for Nov 2017 (MoM) (Prelim) – Forecast +0.3%, versus 0.0% previous.
US Gross Domestic Product Q3 2017 (Preliminary) – Forecast 3.2% versus previous 3.0%.
US Personal Consumption Expenditures Prices for Q3 2017 (QoQ) – Forecast +1.5%, versus +1.5% previous.
US Core Personal Consumption Expenditures for Q3 2017 (QoQ) – Forecast +1.4%, versus +1.3% previous.
