Fundamental analysis

EUR/JPY accumulates bullish energy below 147.50 key resistance

The EUR/JPY pair failed to make a new higher high and now is trading at 147.17 below 147.67 today’s high. It is moving sideways in the short term, that’s why we have to wait for a fresh trading signal before taking action.

Fundamentally, the Japanese economic data came in mixed. Retail Sales rose by 4.5% versus the 4.0% expected, Prelim Industrial Production registered a 1.6% drop compared to the 0.8% drop estimated, the Consumer Confidence dropped from 30.8 points to 29.9 points far below 31.0 forecasts, while Housing Starts registered a 1.0% growth less versus 2.6% expected.

Later, German Retail Sales may report a 0.5% drop, Euro-zone CPi Flash Estimate may register a 9.9% growth, Core CPI Flash Estimate could increase by 4.8%, while the Prelim Flash GDP is expected to register a 0.1% growth.

EUR/JPY Trading In The Red!

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As you can see on the H1 chart, the rate failed to test and retest the uptrend line signaling upside pressure. It’s trapped between 145.63 and 147.72 levels. The bias remains bullish as long as it stays above the uptrend line.

Now, it is almost reaching the 147.72 former high. This level stands as resistance. 148.40 is seen as resistance as well. After its strong rally post the BOJ, we cannot exclude a temporary retreat.

EUR/JPY Forecast!

The EUR/JPY could continue to move sideways as long as the 147.72 resistance remains intact. Coming back to test and retest the uptrend line could announce a new bullish momentum.

A new buying opportunity could appear if the rate makes a new higher high, a valid breakout through 148.40 activates further growth.

The material has been provided by InstaForex Company – www.instaforex.com


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