Fundamental Analysis of EUR/JPY for August 7, 2018
EUR/JPY is currently quite impulsive with the bullish gains which occurred after the recent impulsive bearish pressure in the pair. As of the recent economic reports on the EURO side as well as the Trade War and Brexit tension, JPY has been quite stronger over EURO earlier.
Despite the worse economic reports, today EURO managed to gain certain momentum in the process which is expected to lead to further gains in the coming days. Today EURO German Industrial Production report was published with decrease to -0.9% from the previous value of 2.4% which is expected to be at -0.5%, German Trade Balance decreased to 19.3B from the previous figure of 20.4B which was expected to be at 21.4B and French Trade Balance was also published with decrease to -6.2B from the previous figure of -6.0B which was expected to increase to -5.6B.
On the JPY side, today JPY Household Spending report was published as expected at -1.2% increase from the previous value of -3.9% and Average Cash Earnings increased to 3.6% from the previous value of 2.1% which was expected to decrease to 1.7%. Later JPY Leading Indicators report was published with a decrease to 105.2% from the previous value of 106.9% which was expected to be at 105.4%.
As of the current scenario, JPY economic reports were far better than of the EURO’s but failed to maintain the momentum it had earlier which does indicate the shifting of the market sentiment at the current market situation. Despite certain tensions, the gains of EURO is currently indicating further bullish momentum in the pair for the coming days.
Now let us look at the technical view. The price is currently residing at the support area of 128.50 where the Kumo Cloud support also working as confluence for the situation as well. The market is quite volatile but being above 128.50 area with a daily close after an indecisive candle is expected to push the price higher with strong momentum in the coming days. As the price remains above 128.50 area with a daily close, the bullish bias is expected to continue further with target towards 1.3100-1.3200 area.
RESISTANCE: 1.3100, 1.3200