The Euro (Eur) slips down against the Japanese Yen (JPY) on Monday, decreasing the price of EURJPY to less than 120.00, following a major economic release. The technical bias might remain bullish since the price printed a lower high in the recent downside move.
Technical Analysis EUR/JPY
As of this writing, the pair is being traded around 119.45, the price may come across a support level around 119.15, the confluence of a trend line and horizontal support level ahead of 117.89, the 38.2% Fib level and then 117.31, the trend line support which may prevent the price from falling below the said level as show in the graph below.
On the Upside, a resistance is likely to hit the price around 120.71, the 61.8% Fib level followed by a trend line resistance which awaits at 122.39, and then 123.73, is the next key resistance level which may act as a strong resistance level restricting the price to stay below 123.73, as shown in the graph above. The technical bias may remain bullish as long as 118.85, a major horizontal support level remains intact.
Japan’s Foreign Investment in Stocks Release
The Japanese Ministry of Finance releases data concerning foreign investment in the Japanese stock market. The data comprises of details of flow from the public entities except for the Japanese Bank, showing the differential value in outflow and inflow of the investment in the country. It is to be noted that it is considered as an important indicator of the Japanese economy. If a positive reading is noted then this means the sales of foreign securities have exceeded the purchases of foreign securities and thereby suggesting a bullish market for the currency ahead and vice versa.
Considering the price behavior of the last couple of days, buying EURJPY around the current level can be a good decision in the short to medium term. However, opening long positions might also bring fruitful results.