FxWirePro: EUR/JPY under heavy pressure, flash Manufacturing PMIs in Germany and EMU disappoint

Chart - Courtesy Trading View 

EUR/JPY was trading 1.60% lower on the day at 139.40 at around 09:50 GMT, plunges from session highs at 141.84.

The pair gained further downside traction after Flash Manufacturing PMIs in Germany and EMU disappointed in March.

The Eurozone manufacturing sector contraction deepened in March. Eurozone Manufacturing Purchasing Managers Index (PMI) arrived at 47.1 in March vs. 49.0 expected and 48.5 previous. 

The bloc’s Services PMI edged higher to 55.6 in March vs. 52.5 estimates and February’s 52.7, hitting a 10-month high.

The S&P Global Eurozone PMI Composite jumped to 54.1 in March vs. 51.9 estimated and 52.0 last. 

The manufacturing sector activity in Germany, Eurozone’s economic powerhouse also continues to worsen in March despite falling inflationary pressures.

German Manufacturing PMI came in at 44.4 this month vs. 47.0 expected and 46.3 prior. 

Meanwhile, Services PMI jumped from 50.9 in February to 53.9 in March as against the 51.0 consensus forecast. 

The S&P Global/BME Preliminary Germany Composite Output Index arrived at 52.6 in March vs. 51.0 expected and February’s 50.7. 

Support levels - 138.18 (Lower W BB), 135.88 (110-week EMA)

Resistance levels - 139.72 (Trendline), 141.37 (5-DMA)

Summary: EUR/JPY trades with a bearish bias. Close below trendline (Triangle base) will open downside. Little support seen till 110-week EMA at 135.88.