EUR/JPY trying to stay upright ahead of EU PMIs
- The Euro is still showing some bearish weakness after fighting to stay afloat last week.
- Markets are waking up to measured sentiment for now, but the week is young.
The EUR/JPY is falling in early Monday trading, dropping into 132.25 after lifting into 132.45 to start the week.
The pair is recoiling as the Yen continues to climb, spurred on by Japanese Manufacturing PMIs dropped on markets at 53.3, over and above the previous reading of 53.1 and an upside beat to the forecasted contraction of 52.6.
Adding to the EUR's plate for Monday will be a range of data through the European session, kicking off with French Markit PMIs at 07:00 GMT, closely followed by German Markit PMIS at 07:30 and Euro-area Markit PMIs at 08:00 GMT. German Composite PMI is expected to contract slightly from 55.1 to 55.0, while the EU-wide Composite PMI is forecasting a steeper contraction, from 55.2 to 54.2.
EUR/JPY Levels to watch
The Euro managed to trade sideways against the Yen without giving up much ground, and Friday's decline below 132.10 sees a potential trendline bounce, and a bullish move will have to clear resistance at last week's high near 133.10 before moving on to work through more of February's decline from 137.50, while bears will be looking to push the pair into the recent swing lows at the 130.00 major psychological level.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
