EUR/JPY has been making corrective moves, having no definite trend or market pressure above the 134.50-135.00 support area. Both currencies in the pair is struggling amid mixed economic reports which made market participants hesitate about preferences. This lead to further correction in the pair. Recently, BOJ Policy Rate report was published with the unchanged key interest rate at -0.10% as expected and All Industry Activity report showed a significant increase to 1.0% from the previous value of 0.3% which also helped the currency to gain momentum over EUR. Today, Japan’s Trade Balance report showed a different picture of a notable decrease to 0.09T from the previous figure of 0.29T which was expected to be at 0.27T and Flash Manufacturing PMI report showed a slight increase to 54.4 from the previous figure of 54.0 which was expected to be at 54.3. On the other hand, today French Flash Manufacturing PMI report was published with a decrease to 58.1 from the previous figure of 58.8 which was expected to be at 58.7 and French Flash Services PMI report showed an increase to 59.3 from the previous figure of 59.1 which was expected to be at 58.9. Moreover, German Flash Manufacturing PMI report is going to be published which is expected to have a slight decrease to 63.2 from the previous figure of 63.3, German Flash Services is expected to decrease to 55.6 from the previous figure of 55.8, eurozone’s Flash Manufacturing PMI is expected to decrease to 60.4 from the previous figure of 60.6 and eurozone’s Flash Services PMI is expected to have a slight decrease to 56.5 from the previous figure of 56.6. As for the current scenario, investors expect mixed economic reports today from the eurozone. Speaking about JPY, correction and indecision is expected to continue further in the coming days. JPY has found support from the economic reports recently that is expected to lead to further bearish pressure in the pair until the eurozone comes up with any positive economic reports in the short term to change the market sentiment.
Now let us look at the technical view. The price is residing above the support area from 134.50 to 135.00 and the dynamic level of 20 EMA as well. Due to higher volatility and correction, the price is expected to break lower having Bearish Regular Divergence in place. The price is likely to be impulsive with pullbacks after it breaks below 134.50 with a daily close in the coming days. As the price remains below 136.30 resistance area, the bearish bias is expected to continue further.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Rocky Yaman,
InstaForex Group © 2007-2018
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