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.