EUR/JPY Holds Bullish Edge After Mixed German PMI: Eyes 176 Target

EURJPY pared some of its gains after mixed Germany PMI data.  It hits an intraday low of 174.05 and is currently trading at approximately 174.186. The intraday outlook remains bullish as long as support at 173 holds.

Driven by a 16-month high of 52.4 for the composite PMI, Germany's Flash PMI data for September 2025 showed a mixed economy. While the Manufacturing PMI dropped to a four-month low of 48.5, indicating continuous contraction, a sharp rebound in the Services PMI to 52.5, an eight-month high, occurred. Even though the composite index showed economic growth for the fourth month in a row, consistent weak demand in manufacturing, decreasing new orders, and increasing inflationary pressures are of Concern, with both input and output costs, particularly in services. Among modest growth and rising operating expenses, economists—including Cyrus de la Rubia from Hamburg Commercial Bank—warned about possible output reductions and a worsening economic forecast.

Technical Analysis:

The EUR/JPY pair is trading above  55 EMA, 200, and  365-H EMA  on the 4-hour  chart.

• Near-Term Resistance: Around 174.50,a breakout here could lead to targets at 175/176.
   
• Immediate Support: At 173.45, if breached, the pair could fall to 173/172.50-/171.80/170.80/169.70/169/168.70/168.45/168.
  
  Indicator Analysis  4-hour chart):
• CCI (50): Bullish
   
• Average Directional Movement Index:  Neutral
  
  Overall, the indicators suggest a mixed trend

Trading Recommendation:

It is good to buy on dips around 173.48-50 with a stop loss at 172.50 for a TP of 176.