Global macro overview for 28/02/2017:
The US Durable Goods Orders had surprised the market participants printing better than expected figures. According to the Commerce Department, total Durable Goods Orders have increased by 1.8% in the past month compared with a downwardly revised 0.8% reading registered in December (versus 1.6% expected). The main reason behind the advance was a significant increase in orders for transportation goods which surged 6.0% in January. Orders excluding aircraft fell 0.2%, missing expectations for a 0.5% rise on the month. On the other hand, there were interesting decreases in orders for general electrical equipment (home appliances and components, computers and electronic products). In conclusion, this strong report followed the previous good data from consumer spending and home sales indicating, that the US economy is steady growing in a step-by-step fashion.
Let's now take a look at the EUR/JPY technical picture at the H1 time frame. Despite the strong rally, the bulls did not manage to break out above the 119.49 technical resistance and the market reversed from the overbought conditions again. Currently, the price is trading at the old dashed black trendline support, but it looks like a break out lower is just a matter of time. However, the most important technical support is still the gray rectangle zone between the levels of 118.22 - 118.48. Sustained break out below would suggest more downward price action ahead.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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