EUR/JPY struggling to climb higher December 16, 2016

The EUR/JPY has increased today and is pressuring an important resistance level, could approach the 124.08 yesterday’s high if will have enough energy to take out this resistance level. The Yen remains under pressure despite the Nikkei’s short decrease, the index has found temporary resistance in the yesterday’s trading session, but the perspective remains bullish as long as is trading above the 19000 psychological level. The currency pair has increased as the Euro has become strong again on the short term, has increased also versus the greenback and versus the Cable.
The rate has increased a little even if the Euro-zone economic figures have failed to impress today, the Final CPI has increased by 0.6% in November, matching expectations, while the Final Core CPI has increased by 0.8%, has come in line with expectations, actually has remained steady at 0.8% growth for the fourth month in November. The Trade Balance has disappointed today, the surplus has decreased from 24.4B to 19.7B, even if the economists have expected an increase to 25.2B. The Italian Trade Balance has increased unexpectedly higher, from 3.67B to 4.30B, more versus the 4.21B estimate.

JP225

Remains to see what will happen on the EUR/JPY because the Yen could increase a little on the short term, you can see on the chart above that the Nikkei stock index has found temporary support right above the median line (ML) of the major ascending pitchfork, now has decreased below the mentioned upside obstacle, a failure to climb and to stabilize above the median line will attract more sellers on the short term, the Yen will increase again if the index will slip lower.

EURJPYd

The price has increased and is pressuring again the dynamic resistance from the upper median line (uml) of the ascending pitchfork, yesterday we had a false breakout above the upper median line (uml) and minor upper median line of the minor ascending pitchfork. I want to remind that the perspective remains bullish on the short to medium term after the breakout from the major descending pitchfork, will increase further as long as stays above the 50% retracement level and above the minor median line of the minor ascending pitchfork. The price could decrease a little in the coming days if will close today below the mentioned resistance levels, personally I see an exhaustion on the Daily chart.

EURJPYh

I’ve added the h4 chart to show you better the price movement , the price has tested the confluence formed at the intersection of two upper median lines, could decrease in the coming days after the yesterday’s false breakout. Looks like that the price is loosing the bullish momentum on the short term, the first downside target will be at the 50% retracement level and lower at the upper median line (UML) of the Daily descending pitchfork and at the median line of the minor ascending pitchfork., we’ll have a larger decrease only if the price will fall below the mentioned support levels.

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