The EUR/JPY has increased significantly today, the pair could start a corrective phase because the rate is signaling a bullish reversal, the pair has found strong support right above a major dynamic support line. The European currency has increased versus some of its rivals today, could increase further in the coming period if the buyers will have enough power to hold the rate higher in the coming hours, the EUR/JPY has failed to reach the previous high and now is edging higher, could approach and touch a very important static resistance in the coming days.
The pair has increased significantly even if the Euro-zone economic data has come mixed, the Italian Industrial Production has decreased by 0.6%, even if the traders have expected to see a 0.1% growth, the economic indicator has decreased sharply compared to the 0.4% growth from May, the indicator has reached the lowest level of the last 3-months. The Japanese Yen was punished by the poor economic data today, the Prelim Machine Tool Orders have decreased by 19.9%, has dropped less compared to the 24.7% decreased in the previous reading period. Moreover the Core Machinery Orders have dropped by 1.4%, the data has disappointed because the traders have expected a 3.1% increase, the economic indicator has decreased again, but less compared to the 11.0% decrease in May, while the M2 Money Stock has increased by 3.4%, matching expectations, increasing rate has remained steady at 3.4% for the second month in June.
Tomorrow will be better if you’ll keep an eye on the economic calendar because the Euro-zone and Japan will release important economic data, the figures could bring life on this pair, remains to see how the price will react.

You can notice on the Weeky chart that the rate has found strong support right above the lower median line of the descending pitchfork, the rate has decreased below the dynamic support level, but has failed to remain below this major obstacle. The EUR/JPY is approaching the 61.8% retracement level, where he could find strong resistance, the rate could retest also the median lie (ml) of the descending pitchfork, the short term sentiment will change only if the rate will jump again above the median line and above the 61.8% retracement level, otherwise the corrective phase will resume if the rate will stay below the 61.8% retracement level and below the median line if the descending pitchfork. The outlook remains bearish as long as the rate is trading inside the descending pitchfork’s body.

I’ve drawn a minor ascending pitchfork to show you better the upward movement, we had a very good opportunity to go long on this pair when the price had retested the minor lower median line of the ascending pitchfork, we have a first target at the median line (ml) of the ascending pitchfork, the price is attracted by the confluence zone formed at the intersection of the median line (ml) with the 61.8% retracement level, the perspective is bullish on the short term as long as the rate is trading inside the minor ascending pitchfork’s body.

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