FxWirePro: EUR/JPY retraces from weekly high, euro under pressure after major EU PMI readings miss consensus

EUR/JPY chart - Trading View 

EUR/JPY slipped lower from weekly high at 129.05 hit earlier today after PMI reading from the euro area missed consensus.

The pair was trading 0.31% higher on the day at 128.69 at around 10:20 GMT, after closing 0.20% higher in the previous session.

The Eurozone Manufacturing purchasing managers index (PMI) prints at a 7-month low of 58.7 in September vs. 60.3 expectations and 61.4 last.

The Bloc’s Services PMI drops to 56.3 in September vs. 58.5 expected, data released by IHS/Markit research showed on Thursday.

Further, German manufacturing sector sharply slows its pace of expansion in September. German Manufacturing PMI arrives at 58.5 vs. 61.5 expected, while Services PMI eases to 56.0 vs. 60.2 expected. 

Composite Output Index arrived at 53.3 in September vs. 62.2 expected and August’s 60.0, its lowest levels in seven months.

Euro Zone government bond yields were off their highs as various EU PMI data missed expectations.

Major trend in the pair is bearish. 'Death Cross' on the daily charts weighs on the price action and keeps upside limited.

Bearish invalidation only above 200-DMA. Resumption of downside will see test of 61.8% Fib at 126.39.