Strong Economic Data Supports EUR/JPY Rally in Current Week

Euro CurrencyIn our report published on December 28, 2017, we had predicted the EUR/JPY currency pair to decline and recommended traders to open a short position near 132.60 levels. We also advised traders to buy a put option to make a profit from this currency pair uptrend.

Like we speculated, the currency pair reached to its lowest levels at 131.40 which helped traders to make a lot of money from the downtrend.

Again, EUR/JPY has climbed back and traded at 133 levels, and we expect the uptrend to continue for some time in future. The reason for the same is described in this post below.

The Ministry of Finance in Japan on its report on Thursday mentioned that the trade surplus of the country declined to Yen 0.24 trillion in September from the revised figures of Yen 0.37 trillion in August 2017. Analysts are speculating the trade balance to remain constant at Yen 0.31 trillion. There is a 14.1 yearly growth in exports but lower than the consensus estimates of 14.9 percent and 18.1% growth posted in August. It is the first time in 3 months that exports have slowed down.

European Institute

It is ironic to note that Japan registered the highest growth in almost four years in August. The Ministry of Economic, Trade and Industry reported a revision of 2% in industrial production in September which is slightly lower than 2.1% rise in industrial expansion as speculated by the analysts. In the preliminary report, the growth rate of 2.1% was mentioned. In the data for September 2017, we can infer the Japan economy has slighted slowed down.

As per Eurostat, there is an increase of Euro 21.6 billion in Eurozone Trade Balance in August while comparing with downwardly revised Euro 17.90 billion in July and higher than the expectations of market analysts for Euro 20.3 billion. Likewise, latest account surplus reached to €33.30 billion in August from the figures of €31.50 billion last month and more than the expected value of Euro 26.20 billion as speculating by the analysts.

The current account data shows the demand in global and domestic for the currency. With the year ending in August, there is twice the demand for the Eurozone equities with the rise in investments to Euro 333 billion from Euro 134 billion. The economic data shows substantial support level in EUR/JPY rally shortly.

EURJPY Pair Oct 23rd 2017

EURJPY Pair Oct 23rd, 2017

If we take a closer look at the price chart given above, it could be seen that EUR/JPY currency pair has broken the resistance level at 133.10. Apart from that, bullish hammer pattern is formed by the currency pair. In addition to this, MACD graph is also rising. Hence, we can easily speculate on the currency uptrend to continue in future.

To make profits from EUR/JPY rally, traders are advised to buy a LONG position near 133.60 and place stop order loss below 132.60. The LONG position can be unwinded near 135.50 levels.

After opening a LONG position, traders are advised to invest in a high or above option in the currency market to maximise the profit. One should purchase when the currency pair is trading near $133.60, and traders should select an expiry period of 7 days.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.

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