Forex Market: EUR/JPY daily forecast

During yesterday’s trading session EUR/JPY traded within the range of 138.99-139.87 and closed at 139.21.

At 6:46 GMT today EUR/JPY was losing 0.04% for the day to trade at 139.22. The pair touched a daily low at 139.09 at 5:30 GMT.

Fundamental view

At 9:00 GMT today Eurostat is expected to report on Euro zone’s trade balance during March. The trade surplus is expected to have widened to 16.0 billion euros from 13.6 billion in February. The trade balance reflects the difference in value between exported and imported goods during the respective period. A positive figure indicates that more goods and services have been exported than imported. Export demand has a direct link to demand for the common currency and also causes an impact on levels of production. In case the surplus on Euro zone’s trade balance widened more than expected, this would provide support to the euro.

In addition, the seasonally adjusted trade balance, which is considered as a more reliable indicator, (as it excludes trend, economic fluctuations, seasonal fluctuations, calendar effects, residual or irregular fluctuations) probably expanded to a surplus of 17.3 billion euros in March, from 15 billion in the preceding month.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/JPY manages to breach the first resistance level at 139.72, it will probably continue up to test 140.24. In case the second key resistance is broken, the pair will probably attempt to advance to 140.60.

If EUR/JPY manages to breach the first key support at 138.97, it will probably continue to slide and test 138.48. With this second key support broken, the movement to the downside will probably continue to 137.96.