The EUR/JPY pair was into a temporary corrective phase but now it has reached a support zone. The bias remains bullish despite its temporary decline. Actually, a minor retreta was natural after the most recent leg higher.
The Euro is still strong as the Euro-zone data came in mixed earlier. The Flash Manufacturing PMI was reported at 58.5 points below 57.0 expected, while the Flash Services PMI dropped from 56.4 to 54.7 points, far below the 55.4 estimate. Also, the German and the French data come in mixed.
On the other hand, the Japanese Flash Manufacturing PMI was reported at 53.0 above 51.6 expected. Still, the Yen could resume its sell-off if the Nikkei (JP225) resumes its growth.
EUR/USD Technical Analysis!
EUR/JPY dropped after failing to reach and retest the upper median line (UML) of the ascending pitchfork. Now it has found support on the 23.6% retracement level and is fighting hard to come back higher.
In the short term, it has developed a minor chart pattern. Making a valid breakout above the immediate downtrend line and escaping from the minor triangle could bring new long opportunities.
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