EUR/JPY hits fresh session peak after EU PMI prints

Haresh Menghani FXStreet

The shared currency caught fresh bids across the board following the release of update Euro-zone PMI prints, lifting the EUR/JPY cross to a fresh session high level near 113.20 region.

Better-than-expected releases of Euro-zone PMI readings for October helped snap ECB-led selling pressure around the shared currency. The flash version of Euro-zone manufacturing PMI rose to 53.3 from previous month's 52.6, while services PMI jumped to 53.5 from September's 52.2. The composite PMI index climbed to 53.7 in October as compared to 52.8 expected and September's final reading of 52.6.

Meanwhile, improvement in investor risk appetite, as depicted by positive sentiment surrounding European equity markets, provided additional boost to the pair's recovery momentum.

Going forward, broader market sentiment towards riskier assets will be the key factor determine the safe-haven demand of the Japanese Yen and eventually provide fresh impetus for the pair.

Technical levels to watch

A follow through buying interest is likely to assist the cross further towards 113.50 horizontal resistance above which a fresh bout of short-covering has the potential to lift the pair immediately towards 50-day SMA resistance near 114.10-15 region.

On the downside, renewed weakness back below 113.00 handle now seems to drag the pair below session low support near 112.85 region towards testing Friday's swing low support near 112.60 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 111.83

0% Bullish
83% Bearish
17% Sideways

Bias Bearish

1 Month

Avg Forecast 110.55

10% Bullish
80% Bearish
10% Sideways

Bias Bearish

1 Quarter

Avg Forecast 110.39

0% Bullish
60% Bearish
40% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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