- The single currency is trading on a firm footing ahead of EZ PMI data due later in the EU session.
- Analysts are looking for slightly better prints for today’s Eurozone PMI estimates for June.
- On the other side, the Japanese Yen remains largely resilient to poor Japan PMI data released earlier today.
- Data showed Japan flash manufacturing PMI drops to 7-month lows in June.
- EUR/JPY is holding above the 124 handle, with 20-DMA at 12.93 providing strong support.
- Technical indicators are bullish, RSI and Stochs are biased higher. Price action is above daily cloud and major moving averages.
Support levels - 123.93 (20-DMA), 123.22 (23.6% Fib of 114.85 to 125.81 rally), 122.70 (trendline)
Resistance levels - 124.64 (double top May 29 and June 20), 125, 125.31 (June 2 high)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 31.7176 (Neutral), while Hourly JPY Spot Index was at -71.3158 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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