The EUR/JPY has rebounded in the current week, the price has recovered after the last massive drop, the perspective remains bearish on the medium term as long as is located in the seller’s territory. The corrective phase may continue in the coming months is the seller’s will have enough power to maintain the rate below some important resistance levels. The rate has decreased a little even if the Japanese economic data has come mixed, the Household Spending has decreased by 1.1%, less than the -1.3% prediction, the Unemployment Rate has increased by 3.2%, matching expectations, while the Tokyo Core CPI has decreased by 0.5%, has met the forecast, the National Core CPI has decreased as well, has reached a 0.4% decrease versus a 0.3% drop in the last reading period. The Yen has increased a little versus all its rivals today, even if the Final Manufacturing PMI has remained in the contraction territory, the economic indicator has increased from 47.8 to 48.1 points, while the BOJ Core CPI has increased by 0.8%, has come in line with expectations. The Yen has received a helping hand from the Consumer Confidence, which has increased from 40.9 to 41.8 points, have reached the highest level of the last 5-months, has come better than the 41.1 points estimate.
The Eur-zone economic data has come mixed as well today and have failed to lift the Euro, the Unemployment Rate has decreased from 10.2% to 10.1%, matching expectations, while the Final Manufacturing PMI has increased from 52.6 to 52.8 points, the manufacturing sector continues to expand. Meanwhile the Spanish Manufacturing PMI has increased from 51.8 to 52.2 points, moreover the Italian Manufacturing PM has increased to 53.5 points, signaling that the manufacturing sector continues the expansion, the German Final Manufacturing PMI has come in line with expectations, has reached he 54.5 points.

The rate is approaching the 61.8% retracement level, has closed the previous gap down, but the perspective remains bearish as long as the rate is located below the 61.8% level and below the median line (ml) of the descending pitchfork, the price could retest the dynamic resistance in the coming week if the Cable will resume the downward movement. The pair could increase on the short term as the rate has failed to close right on the lower median line of the descending pitchfork, could retest the median line before will resume the downward movement, the corrective phase will continue as long as the price remains stuck below the 61.8% retracement level, the major downside target is at the 100 Fibonacci line, near the 94.00 psychological level.

You can see that the rate is moving sideways on the lower timeframes, we have a short consolidation and the pair could decrease again if the buyers will fail to push the price above the 61.8% retracement level, the Euro buyers could lose ground again in the coming week if the Nikkei stock index will fall further in the coming days and weeks.

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