FxWirePro: EUR/JPY hovers around 5-DMA, focus on German trade balance data

EUR/JPY chart on Trading View used for analysis

• EUR/JPY is trading 0.16% higher at the time os writing at 128.61.
   
• Euro edges higher as markets await German trade balance and Eurozone sentix index data due later.
   
• Markets are expecting an increased German trade surplus with a 0.5% rise in exports and a 0.4% rise in imports.
   
• Technical studies are neutral. Caution seen ahead of the key risk event for the Euro - the European Central Bank policy meeting on Thursday at 12:45 GMT. 
   
• Analysts expect the central bank to continue it’s plans in reducing stimulus and announce an end to quantitative easing despite the falling growth rate.
   
• The pair has been extending range trade and ECB meeting could provide a clear direction.
   
• The Eurozone PMI numbers due Friday will also be watched closely as an indicator of activity in the important manufacturing and services sectors.
   
• Immediate support is seen at 5-DMA at 128.29, while 55-EMA at 128.96 offers immediate resistance.

Support levels - 128.29 (5-DMA), 128, 127.70 (trendline)

Resistance levels - 128.96 (55-EMA), 129, 129.32 (110-EMA)

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