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During yesterday’s trading session EUR/JPY traded within the range of 140.13-140.63 and closed at 140.56.

At 6:56 GMT EUR/JPY traded at 140.80, gaining 0.21% for the day. The pair broke the first key resistance and touched a daily high at 140.85 at 6:44 GMT.

Fundamental view

The economic sentiment in Germany probably deteriorated to 40.0 in May, according to the median experts forecast. In April, the index came in at 43.2, which was the weakest since August 2013.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. The study involves 350 financial experts. The indicator reflects the difference between the share of analysts that are optimistic and those that are pessimistic about the expected economic development in Germany over the next six months. A positive figure indicates that the proportion of optimists is larger than that of the pessimists.

In addition, the ZEW economic expectations index in the Euro zone probably jumped to 63.5 this month, according to the median analysts estimate. In April, the index came in at 61.2.

Higher-than-projected readings would certainly provide support to the 18-nation common currency. The official data is to be released at 9:00 GMT.

Technical view

Screenshot from 2014-05-13 10:02:18

According to Binary Tribune’s daily analysis, in case EUR/JPY manages to breach the first resistance level at 140.75, it will probably continue up to test 140.94. In case the second key resistance is broken, the pair will probably attempt to advance to 141.25.

If EUR/JPY manages to breach the first key support at 140.25, it will probably continue to slide and test 139.94. With this second key support broken, the movement to the downside will probably continue to 139.75.

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