FxWirePro: EUR/JPY slips lower, dovish ECB expectations keep EUR on the back foot

EUR/JPY chart - Trading View 

EUR/JPY is extending weakness ahead of the ECB policy meeting due later today.

European Central Bank (ECB) will announce interest rate decision at 11:45 GMT, followed by a press conference at 12:30 GMT.

Dovish ECB expectations keep EUR on the back foot. EUR/JPY trades 0.16% lower at 120.31 at 07:20 GMT.

Markit data released on Wednesday showed German business activity slowed in July. The country’s manufacturers recorded their worst monthly performance in seven years.

EZ manufacturing index printed at 46.4, the lowest reading in 79-month, while services activity fell to 53.3 a 2-month low. 

EUR/JPY trades with a strong bearish bias, scope for weakness till 119.80 (trendline support).

5-DMA is immediate resistance at 120.65. Bearish invalidation only above daily cloud.

Support levels - 120, 119.80 (trendline support), 118.82 (Dec 2018 low)

Resistance levels - 120.65 (5-DMA), 121.32 (21-EMA), 121.88 (50-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.