EUR/JPY—Looks Like There Is More Downside Left

02/17/2016 9:00 am EST

Focus: FOREX


On Tuesday, the staff at FXTimes.com takes a technical look at how the euro traded down against the Japanese yen, points out that there is likely more downside left, and shares their outlook on the impact the German and Euro Area ZEW Economic Sentiment reports may have on them moving forward.

Key Points

  • Euro traded down against the Japanese yen and it looks like there is more downside left.
  • There was a support trend line formed on the hourly chart, which was broken to ignite a down move.
  • German ZEW Economic Sentiment came in at 1, down from the last reading of 10.2.
  • Euro Area ZEW Economic Sentiment was also down from 22.7 to 13.6 in February 2016.

Technical Analysis

The euro moved down recently against the Japanese yen, and once the bearish pressure increased, the EUR/JPY moved further down. There was a support trend line formed on the hourly chart, which was broken to call for more losses in the near-term.

chart
Click to Enlarge

The EUR/JPY pair also moved below the 50-, 100-hourly simple moving average, which means the bearish pressure is a lot more compared with buyer’s sentiment.

On the upside, the broken trend line and the 100 MA may act as a sell zone and resistance area.

German ZEW Economic Sentiment

Tuesday, the German ZEW Economic Sentiment, which measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic was published. To read the entire article, click here…

By the Staff at FXTimes.com

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