FxWirePro: EUR/JPY confined to range trade ahead of Eurozone PMI data, outlook bearish

EUR/JPY chart - Trading View 

EUR/JPY was trading in a narrow range, with session high at 116.769 and low at 116.445.

Technical studies suggest major and minor trend in the pair are bearish. Breach at major trendline support at 116 could plummet prices.

European PMIs due later today will set tone for further direction. Weaker-than-expected data could bolster the soft tone around the single currency. 

Germany's Markit Manufacturing PMI, due at 07:30 GMT, is expected to show the deterioration in the manufacturing sector gathered pace in April. The PMI is forecasted to drop to 39 from March's 45.4. 

The Eurozone Manufacturing PMI is also expected to drop to 39.2 in April from 44.5 in March. 

Focus also on European Union (EU) summit. An unfavorable outcome may cause widening in the peripheral bond spreads, leading to deeper losses in the euro.

Major attention will also be given to Monday’s BOJ meeting wherein the central bank is largely expected to downgrade economic forecasts.