EUR/JPY chart - Trading View
The single currency was buoyed across the board after upbeat German and eurozone PMI data.
German Preliminary Manufacturing PMI betters estimates with 50.0 in July. The pair is extending upside for the 4th straight session.
Further, Eurozone Manufacturing PMI improved to 51.1 and the Services PMI jumped to 55.1 in July.
The pair is extending downside with a 'Shooting Star' formation on the previous day's candle. Upbeat data has helped erase some losses, but downside pressure intact.
The Japanese yen remains bid amid escalating Sino-US tensions which have dented risk appetite.
Weakness on account of 'Shooting Star' and overbought oscillators finds strong support at 200H MA at 122.78. Break below could drag prices lower.
Major trend in the pair is bullish. Resumption of upside will see test of 200W SMA at 124.71 ahead of 50% Fib at 125.95.
Support levels - 122.78 (200H MA), 122.10 (21-EMA), 119.91 (200-DMA)
Resistance levels - 124.43 (2020 high), 124.71 (200W MA), 125.95 (50% Fib)
