EUR/JPY Forecast – Euro Remains In Uptrend
- The Euro traded higher recently and moved above the 131.20 resistance against the Japanese Yen.
- There is an expanding triangle forming with support at 131.70 on the hourly chart of the EUR/JPY pair.
- Today in the Euro Zone, the German Consumer Price Index for August 2017 was released by the National Institute of Statistics.
- The outcome was in line with the forecast, as there was a rise of 0.2% in the CPI (MoM).
The Euro formed a solid support near 129.40-129.50 levels against the Japanese Yen. After forming a base, the EURJPY pair climbed higher and traded above the 130.00 and 131.00 resistance levels.
Recently, it cleared a major hurdle at 131.20, opening the doors for further gains. A new weekly high was formed at 132.00 from where a correction wave was initiated.
On the downside, the 23.6% Fib retracement level of the last wave from the 130.90 low to 132.00 high is an immediate support. Moreover, there is an expanding triangle forming with support at 131.70 on the hourly chart.
As long as the pair is above the triangle support and 131.50, it might continue to move higher in the near term and could even break 132.00.
Today in the Euro Zone, the German Consumer Price Index for August 2017 was released by the National Institute of Statistics. The forecast was slated for a rise of 0.2% in the CPI compared with the previous month.
The actual result was in line with the forecast, as there was a rise of 0.2% in the CPI. Looking at the yearly change, there was a rise of 1.8% in the German CPI, similar to the last +1.8%.
The German wholesale price Index was also released today for August 2017. The result was positive, as there was a rise of 0.3% (MoM), higher than the forecast of +0.1%.
AUDUSD – Aussie Dollar To Surge Higher?
- The Aussie Dollar is holding the 0.8000 support against the US Dollar, and might trade higher.
- The AUD/USD pair is currently attempting an upside break above a bearish trend line at 0.8040 on the hourly chart.
The Aussie Dollar started a correction wave from the 0.8124 high against the US Dollar. The AUD/USD pair traded as low as 0.7997 where it found bids.
Later, the pair slowly formed a decent support base and moved above the 23.6% Fib retracement level of the last decline from the 0.8124 high to 0.7997 low. A bullish trend line on the hourly chart at 0.8010 is holding losses and acting as a major buy zone.
At the moment, the pair is attempting an upside break above a bearish trend line at 0.8040 and the 100 hourly simple moving average. If buyers succeed, the pair could head towards the 0.8060 level.
Therefore, buying with a break above the 0.8040 level and 100 hourly SMA can be considered in the near term. The upside targets could be 0.8060 and 0.8075 and supports are at 0.8010 and 0.8000.
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