EUR/JPY chart - Trading View
Spot Analysis:
EUR/JPY was trading 0.52% lower on the day at 131.59 at around 09:30 GMT
Previous Week's High/ Low: 132.91/ 131.55
Previous Session's High/ Low: 132.44/ 131.78
Fundamental Overview:
IHS Markit's Final Purchasing Managers' Index (PMI) for manufacturing printed at 57.8, slightly down from an initial "flash" reading of 58.2. The reading compared with 58.4 in September.
Supply bottlenecks, shortages of semiconductors and raw materials, hampered growth in German manufacturing activity for the third month in a row in October.
Manufacturers likely forced to pass the added costs on to consumers, raising fears of an inflation spiral that dampens both consumption and growth.
Further, cautious mood in the market also weigh on the EUR/JPY prices.
Technical Analysis:
- EUR/JPY is extending downside from multi-month highs of 133.48 hit on 20th Oct
- The pair is hovering around 21-EMA support, breach below will drag the pair lower
- RSI is biased lower, MACD confirms bearish crossover on signal line
- Price action is below 200H MA which is capping recovery attempts in the pair
Major Support and Resistance Levels:
Support - 131.56 (21-EMA), Resistance - 132.07 (5-DMA)
Summary: EUR/JPY was trading with a bearish bias. Watch out for break below 21-EMA for further weakness.
