The EUR/JPY pared some of its gains on the weak Euro.It hit a high of 160.07 yesterday and currently trading around 159.54. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.
Germany's Preliminary Manufacturing PMI for December 2024 fell to 42.5, lower than the expected 43.8 and down from 43.0 in November. A PMI below 50 indicates that manufacturing activity is decreasing, showing ongoing problems like weak demand and fewer new orders. Meanwhile, the Services PMI improved to 51.0, signaling growth in that sector, which is a positive sign despite overall economic challenges. This difference suggests that while manufacturing is struggling, the services sector is holding up better. Overall, the sharp drop in the Manufacturing PMI reflects continued difficulties for German manufacturers as the year ends.
Technical Analysis:
The EUR/JPY pair is trading above the 55 EMA and below the 34 EMA as well as the 365 Hull moving average on the 4-hour chart.
- Near-Term Resistance: Around 162– a breakout here could lead to targets at 163, and 164.18.
- Immediate Support: At 160.80 – if breached, the pair could fall to 160/159/158.60/158.
Indicator Analysis (4-hour chart): - CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a mixed trend.
Trading Recommendation:
Consider buying on dips around 161, with a stop loss at 160, targeting take profit levels at 163.
