Forex Market: EUR/JPY daily forecast

During Friday’s trading session EUR/JPY traded within the range of 136.66-137.25 and closed at 136.75.

At 7:31 GMT today EUR/JPY was adding 0.05% for the day to trade at 136.82. The pair touched a daily high at 136.90 at 7:05 GMT.

Fundamental view

Business Confidence in Italy, the third-largest economy in the Euro zone, probably improved to 100.9 this month, from 100.0 in June, that was the highest since June 2011.

The Institute for Economic Studies and Analyses (ISAE) explores the cyclical development of the manufacturing sector in Italy by studying 4 000 Italian business companies. The index mainly considers the current trend (domestic and international) in orders, production and stocks. It also takes into account the short-term forecasts on orders, production and prices, as well as the general economic situation. Respondents also draw up an estimate of their planned costs and investments for the current year, the next year and the year after next year, making evaluation of investment rates for the same years.

The Istituto di Studi e Analisi Economica (ISAE) will release an official report at 8:00 GMT. Higher than expected reading will certainly heighten demand for the 18-nation common currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 136.89. In case EUR/JPY manages to breach the first resistance level at 137.11, it will probably continue up to test 137.48. In case the second key resistance is broken, the pair will probably attempt to advance to 137.70.

If EUR/JPY manages to breach the first key support at 136.52, it will probably continue to slide and test 136.30. With this second key support broken, the movement to the downside will probably continue to 135.93.

In weekly terms, the central pivot point is at 136.82. The three key resistance levels are as follows: R1 – 137.27, R2 – 137.79, R3 – 138.24. The three key support levels are: S1 – 136.30, S2 – 135.85, S3 – 135.33.