EUR/JPY moves sideways in the short term. The price could explode soon after ending its current narrow range. The pair dropped a little as the Nikkei (JP225) plunged. JP225’s growth could force the Japanese Yen to depreciate again.
The Euro-zone Industrial Production is expected to drop by 0.3% after a 0.1% drop in the previous reporting period. On the other hand, the Japanese PPI increased by 5.6% versus 5.1% expected.
EUR/JPY Technical Analysis!
EUR/JPY has managed to jump above the downtrend line and now it tries to consolidate above the ascending pitchfork’s lower median line (lml). It’s located below the weekly pivot point (129.72).
Jumping and stabilizing above it could signal further growth at least until the triangle’s resistance. Only a valid breakout from the current chart pattern could signal an important upwards movement.
Technically, the bullish scenario could be invalidated by a valid breakdown below the ascending pitchfork’s lower median line (LML).
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