Key Highlights
· Euro moved lower against a basket of currencies, including the Japanese yen and looks set for more losses in the near term.
· Japanese National Consumer Price Index released by the Statistics Bureau posted an increase of 0.4% in June 2015, lower when compared with the last rise of 0.5%.
· Japanese Unemployment Rate, which comes from the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau, rose from 3.3% to 3.4%.
· Today, the Eurozone CPI will be released by the Eurostat, which is forecasted to increase by 0.2% in July 2015.
EUR/JPY Technical Analysis
The EUR/JPY pair struggled this week to maintain gains, and traded lower. There were a couple of support trend lines on the hourly chart, which were breached to clear the way for more downsides in the near term. One important bearish point to note is the fact that the pair is now trading below the 100 and 200 hourly simple moving averages.
The pair already made an attempt to correct higher, but failed around the broken trend line and the 23.6% Fib retracement level of the last drop from the 136.94 high to 135.53 low. In short, we might assume that the pair completed a correction and could be heading lower in the near term.
On the downside, the next support area may be around 135.00-10, followed by the all-important 134.80.