Euro climbed above the 117.00 resistance against the Japanese yen, and it looks like the EURJPY is poised for further gains.
EURJPY Weekly Analysis – Euro Remains In an Uptrend
· Euro traded higher during the past few days against the Japanese yen and broke the 117.00 resistance.
· There is an ascending channel formed for EURJPY on the 4-hours chart, acting as an upside move catalyst.
· Today in the Euro Zone, the current account, released by the Bank of Greece posted a trade surplus of €1.008B.
EURJPY Technical Analysis
The Euro enjoyed gains recently against the Japanese yen, and broke a couple of important resistance levels including 116.00 and 117.00. The EURJPY pair traded as high as 117.96 recently, and currently correcting lower.
As we can see from the 4-hours chart of EURJPY, there is an ascending channel pattern formed, which is acting as a support and may provide bids near 117.00 if the pair corrects lower. The channel support is also positioned with the 23.6% Fib retracement level of the last wave from the 115.30 low to 117.96 high.
So, if the pair corrects lower from the current levels, then the channel support at 117.00 may act as a buying zone. As long as the pair is inside it, there are chances of further gains in EURJPY.
Trade Idea – If you are looking to enter a buy trade, then consider it on dips near the highlighted channel support trend line with a stop below it.
Today in the Euro Zone, there was no major economic release. One low-risk release was the Greece current account, released by the Bank of Greece. The market was not expecting any major decrease in the net flow of current transactions, including goods, services and interest payments from the last reading of €1.821B.
The result was mixed, as the Greece current account came in at €1.008B in Sep 2016, compared with the same month a year ago. The report added that the “”current account showed an improvement of €104 million year-on-year and recorded a surplus of €1.0 billion, as a result of an increase of €255 million in the balance of goods and services surplus, which reached €1.1 billion”.
Overall, the Euro remains in an uptrend and may continue to move higher towards 118.00 vs the Japanese yen.