Global macro overview for 27/02/2017:
The Consumer Confidence and Sentiment data from the Eurozone were released today and mostly were better than expected. Services Sentiment increased from 12.8 to 13.8 points, Industrial Confidence increased from 0.8 to 1.3 points, Business Climate increased from 0.76 to 0.82 points, Economic Sentiment and Consumer Confidence stayed unchanged at the levels of 108 and -6.2 points respectively. Moreover, the Consumer Inflation Expectations were unchanged as well at the level of 14.5 points. In conclusion, the Eurozone sentiment and business climate remains stable and the inflation data holds up. This looks like a good base for a further economic stability and possible expansion.
Let's now take a look at the EUR/JPY technical picture at the H4 time frame. The market had tested the important technical support at the level of 118.23 and now is trying to bounce towards the next technical resistance at the level of 119.85. The oversold market conditions might help the bullish cause, together with growing bullish divergence between the price and the momentum oscillator.
