EUR/JPY lost its shine on the weak Euro.It hit a low of 161.17 at the time of writing and is now trading around 161.27. The intraday outlook is bearish as long as the resistance 163 holds.
The German Flash Manufacturing PMI for November 2024 is reported at 43.2, slightly above the expected 43.0, showing a small improvement but still indicating a decline in the manufacturing sector. The Services PMI fell to 49.4, suggesting a contraction in services activity, while the Composite PMI also dropped to 47.3, reflecting ongoing economic challenges. Despite the slight improvement in manufacturing, analysts warn that rising costs and declining orders, especially in the automotive sector, continue to pressure the economy. Overall, the economic outlook remains difficult with concerns across both manufacturing and services.
The Eurozone Flash Manufacturing PMI for November 2024 is reported at 45.2, showing that the manufacturing sector continues to shrink. This number indicates ongoing difficulties for manufacturers in the region, as any reading below 50 means a decline in activity.
Technical Analysis
The pair is currently below the 34- and 55 EMA, as well as the 365 Hull moving average on the 4-hour chart.
Near-Term Resistance: Around 161.20. A breakout here could lead to targets of 161.80/162/163.
Immediate Support: At 160. If this level is breached, the pair could drop to 159 or 158.10.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Overall, indicators suggest a bearish trend.
Trading Recommendation
Consider selling on rallies around 161.28-30, with a stop loss at 162, aiming to take profit levels at 158.15.
