EUR/JPY chart - Trading View
- EUR/JPY is consolidating previous session's slump, hovers around 125.80 at 0700 GMT.
- Sluggish Euro-zone manufacturing PMI prints keeps the single currency suppressed.
- Eurozone manufacturing PMI came in at a 2-month highs of 47.8 in April vs. 47.9 expected and 47.5 last.
- The services PMI fell sharply to 3-month lows of 52.5 vs. 53.3 last. Data resurfaced market concerns about the global economic outlook.
- The pair is holding support at 21-EMA at 125.65, break below will see weakness.
- Price action has retraced below 110-EMA and dipped into daily cloud. Break below 21-EMA targets 125 (trendline).
- On the flipside, decisive break above 110-EMA to see gains till 61.8% Fib at 127.67.
Support levels - 125.65 (21-EMA), 125 (trendline), 124.77 (Apr 10 low)
Resistance levels - 126, 126.20 (110-EMA), 126.80 (Apr 17 high)
Recommendation: Good to go short on break below 21-EMA, SL: 126.20, TP: 125/ 124.75
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
