Key Highlights
- The Euro remains in a crucial uptrend and is positioned well above 132.00 against the Japanese Yen.
- There is an important bullish trend line formed with support at 132.60 on the 4-hours chart of EUR/JPY.
- The pair may correct in the short term, but it remains supported around 132.75 and 132.60.
- Today, the ECB interest rate decision is lined up, and the central bank is likely to make no changes in April 2018.
EURJPY Technical Analysis
The Euro traded higher recently above 133.00 against the Japanese Yen. The EUR/JPY pair remains in a major uptrend, but there are chances of a short-term downside correction.
The pair traded as high as 133.49 this week before starting a downside correction. It declined below the 23.6% Fib retracement level of the last wave from the 132.04 low to 133.49 high.
However, there are many supports on the downside around the 132.50 level. There is also an important bullish trend line formed with support at 132.60 on the 4-hours chart of EUR/JPY. Above the trend line support, the 132.75 level is also a key support.
The stated 132.75 support is close to the 50% Fib retracement level of the last wave from the 132.04 low to 133.49 high. Therefore, if the pair continues to move down, it could find buyers around 132.75 and 132.60.
A break below 132.60 may perhaps open the doors for more declines towards 132.00 and the 100 simple moving average (red, 4-hours). On the upside, an initial resistance is at 133.25, followed by the recent high of 133.49.
Economic Releases to Watch Today
- Germany’s GfK Consumer Confidence for May 2018 – Forecast 10.8, versus 10.9 previous.
- ECB Interest Rate Decision April 2018 – Forecast 0%, versus 0% previous.
- US Initial Jobless Claims – Forecast 230K, versus 232K previous.
- US Durable Goods Orders for March 2018 – Forecast +1.6% versus +3.1% previous.
