Key Highlights• The euro is in a slow and steady downtrend against the Japanese yen with resistance at 119.60.• There is a crucial bearish trend line with resistance 119.50 formed on the 4-hours chart of EUR/JPY.• Today, the Euro Zone Retail Sales figure for Feb 2017 (MoM) will be released by the Eurostat, which is forecasted to increase by 0.5%.• Today, the Japanese Monetary Base for March 2017 (YoY) released by the Bank of Japan posted a rise of 20.3%.
EUR/JPY Technical AnalysisThe euro was under pressure vs the Japanese yen since it declined by more than 500 pips during the past few weeks. The EUR/JPY may continue to head lower and could test 117.00.
EUR/JPY 4-Hour Chart
During the downside move, the pair broke a major support area at 120.00 and 120.20. And, the pair was also above to move below the 100 simple moving average (H4) at 120.50. The pair recently traded as low as 117.84, and looking to correct higher.
On the upside, there is a crucial bearish trend line with resistance 119.50 formed on the 4-hours chart. An initial resistance is at 23.6% Fib retracement level of the last drop from the 120.44 high to 117.84 low at 118.45. Above it, the 119.00 and 119.20 levels may act as a hurdle.