Forex Market: EUR/JPY daily outlook

During yesterday’s trading session EUR/JPY traded within the range of 140.19-141.04 and closed at 140.38.

At 8:47 GMT today EUR/JPY was losing 0.22% for the day to trade at 140.10. The pair broke the first key support and recorded a daily low at 139.97 at 8:16 GMT.

Fundamental view

Euro zones gauge of economic sentiment probably improved to a reading of 101.3 in March from 101.2 during February. This is a compound index, that is comprised of five sub-indexes, reflecting sentiment in different sectors of the economy. It includes consumer confidence, industrial confidence, confidence in the sector of services, confidence in the retail trade sector and confidence in the sector of construction. Readings above the key level of 100.0 are indicative that optimistic forecasts overwhelm pessimistic ones. The more readings distance from it, the stronger economic confidence is. The official reading is due out at 10:00 GMT.

At the same time, the preliminary annualized index of consumer prices (CPI) in Germany probably slowed down to 1.1% in March from 1.2% in the preceding month. In monthly terms, the CPI probably increased 0.4% this month, after consumer prices climbed 0.5% in February.

Germanys preliminary annualized index of consumer prices, evaluated in accordance with Eurostats harmonized methodology, probably was 0.9% in March, after reaching 1.0% in February. If the CPI accelerates more than expected, this will heighten the appeal of the euro. The official data will be released at 13:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/JPY manages to breach the first resistance level at 140.88, it will probably continue up to test 141.39. In case the second key resistance is broken, the pair will probably attempt to advance to 141.73.

If EUR/JPY manages to breach the first key support at 140.03, it will probably continue to slide and test 139.69. With this second key support broken, the movement to the downside will probably continue to 139.18.