EURJPY – Reasons to Stay or Get Long

EURJPY weekly chart
EURJPY set to test the trendline in the near term.

The JPY bull case is running into headwinds. EUR has troubles of its own but is not likely to ease at the level of the BoJ.

EURJPY Announcements

Time Cur. Imp. Event Actual Forecast Previous
Monday, May 16, 2016
22:30   JPY Industrial Production (MoM) (Mar) 3.8% 3.6% 3.6%
Tuesday, May 17, 2016
03:00   EUR Trade Balance (Mar) 28.6B 22.5B 19.0B
33 min   JPY GDP (QoQ) (Q1)   0.1% -0.3%
33 min   JPY GDP (YoY) (Q1)   0.2% -1.1%
Wednesday, May 18, 2016
03:00   EUR Core CPI (YoY) (Apr)   0.7% 0.8%
03:00   EUR CPI (MoM) (Apr)   1.2%
03:00   EUR CPI (YoY) (Apr)   -0.2% -0.2%

EURJPY Technical Analysis

EURJPY is looking to test the trend line that was started back in December 2015 which means it will get back up above 124 in the near-term.  Look for trend line to be broken as the plans to weaken the currency become public knowledge.

EURJPY weekly chart
EURJPY set to test the trendline in the near term.

 

EURJPY Investment Bank Forecasts

EURJPY Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
ScotiaBank 121.00 121.00 120.00 122.00 126.00
Morgan Stanley 119.00 115.00 110.00 112.00 112.00

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