The EUR/JPY has increased significantly and has resumed the last day’s bullish momentum, right now is pressuring an important dynamic resistance, a valid breakout will attract more buyers, which will lead the rate towards new highs. The pair has increased significantly even if the Nikkei stock index has fallen sharply in the first part of the day, the index continues to move sideways on the short term, but maintains a bullish perspective. The JP225 is trading right below the 19700 psychological level after the breakout from a minor symmetrical triangle, a further increase will force the Yen to decrease further versus all its rivals, not only against the Euro.
The pair has increased on the mixed Japanese and Euro-zone economic figures, the Japanse Household Spending have decreased by 1.2% in January, more versus the -0.3% estimate, the indicator has decreased further after the 0.3% drop in the previous reading period, while the Unemployment Rate has decreased from 3.1% to 3.0% in January, matching expectations. The Yen has taken a hit also from the Japanese Consumer Confidence, which has decreased from 43.2 to 43.1 points, even if the economists have forecasted an increase to 43.7 points. Moreover the Tokyo Core CPI dropped by 0.3%, even if everyone has expected a 0.2% increase, while the National Core CPI rose by 0.1%, beating the 0.0% estimate.
The European currency has increased on the mixed Euro-zone data, the Retail Sales indicator has decreased unexpectedly by 0.1%, despite that the traders have expected to see a 0.3% growth, the retail sales have dropped again after the 0.5% drop in the previous reading period, meanwhile the Final Services PMI decreased from 55.6 to 55.5 points, even if the economists have predicted that the indicator will remain steady at 55.6 points. The German Retail Sales have dropped by 0.8% in the first month of the year, even if the economists have expected to see a 0.2% increase, the German Final Services PMI indicator has remained steady at 54.4 points, matching expectations.
Moreover the French final Services PMI has decreased from 56.7 to 56.4 points, signalling that the expansion has slowed down, while the Italian Services PMI rose to 54.1 points, beating the 53.1 estimate, the Euro was bullish again today and has managed to increase also versus the greenback and versus Cable.


The rate has increased and has managed to resume the minor bullish momentum, has jumped above the median line (ml) of the ascending pitchfork, but the breakout need confirmation. A valid breakout could bring a good buying opportunity, but only after a retest. Will increase further if the Nikkei stock index will have enough directional energy to take out the major resistance from 19700 psychological level. Technically is somehow expected to increase after the false breakdown below the upper median line (UML) of the major descending pitchfork, has managed to climb also above the sliding line (descending dotted line), so the perspective is bullish.


I've added a minor ascending pitchfork on the H4 chart, the rate could be attracted by the upper median line (uml) after the breakout above the median line (ml). Could approach also the 50% retracement level in the coming days, where he could find temporary resistance.

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