FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Technical Analysis: Bias Neutral

- EUR/JPY was trading 0.41% higher on the day at 0.8419 at around 10:50 GMT

- Price action has bounced off Triple Bottom at 127.93, weakness only on break below

- Price action has edged above 5-DMA and is testing 23.6% Fib at 129.29

- The pair still trades below 200H MA and GMMA shows bias is bearish

Fundamental Overview:

Better-than-expected German/Eurozone PMIs for November support gains, while COVID-19 jitters cap upside.

Flash German Manufacturing PMI for November came in at 57.6 suggesting manufacturing sector activity in Eurozone’s economic powerhouse continued with its solid pace of expansion.

Further, German services sector reached a two-month high level of 53.4 in November as against expectations for a fall to 51.5 from 52.4 in the previous month. 

Separately, the flash Eurozone Manufacturing PMI also surpassed market expectations and arrived at 58.6 in November, a two-month high.

Support levels - 129, 128.35 (Lower BB), 127.93 (Triple Bottom)

Resistance levels - 129.75 (200H MA), 130, 130.35 (110-EMA)

Summary: EUR/JPY has bounced off major trendline support at 127.93 to form Triple Bottom. Major trend remains bearish. Break above 200H MA could see more upside. Bearish invalidation only above 200-DMA.