Chapter 44 Is EURJPY Falling down?
03/01/2023
Summary
Germany high impact news leads the market
Fundamental analysis
As we know Germany is the leader of the Europe zone financial markets, Any high-impact news in Germany would reflect on the euro, Today we have Unemployment rates with expectations the same as the previous month And also we have CPI inflation rates Both expectations are negative.
On the other hand, we can see the Japanese yen is gaining strength With support from Japan's central bank.
Germany Unemployment Rate
Previous 5.6%
Expected 5.6%
Germany CPI Prelim MoM
Previous -0.5%
Expected -0.3%
Technical analysis
On the 1H chart time frame, We can identify very clearly that we are in a downtrend with a 20 moving average pointing down the Market price now at 138.574 We expect the market to pull up and the previous support zone at 139.200 And then we'll continue down to the previous daily chart demand at 137.500.
Trading Recommendation
Trading Direction: Short
Entry Price: 139.200
Target Price: 137.500
Stop Loss: 140.600
