OctaFX | OctaFX Forex Broker
Open trading account

Forex: EUR/JPY recovers the mark of 128.24 after EMU PMI

FXstreet.com (Barcelona) - The EUR/JPY collapsed on lackluster German and EMU PMI data during European trading Tuesday. The move comes on the heels of an upside attempt that was cut drastically short at the 129.16 level. After bottoming out at the 127.93 level (session low), the cross has recovered the mark of 128.24 in these moments.

In Germany, Markit Manufacturing PMI (April) yielded a figure of only 47.9, missing estimates of 49.0. Moreover, Markit Services PMI (April) came in at 49.2, relative to expectations of 51.0. Meanwhile, in the EMU, Markit Manufacturing PMI (April) was reported at 46.5 vs. a projection of 46.8. The Markit PMI Composite has also yielded 46.5 in April, matching a consensus of 46.5.

According to the UBS Research Team, “As long as support for the EUR/JPY at 127.82 holds, there is potential for the cross to extend its broader strength to 132.05 and then 134.38.”

“The EUR/JPY has broken the horizontal support at 129.70, followed by 128.80, in addition to breaking the short term ascending trend line shown above. Accordingly, a continuation of the bearish bias is likely, targeting a move towards the bottom of the range near 126.50 and 126.00 key support levels.” warns the ICN.com analyst team.

EMU: Flash PMI Manufacturing declines against expectations in April

Preliminary Eurozone PMI Manufacturing decreased to 46.5 points in April, from 46.8 points in March, according to data released today by Markit. Analysts expected the indicator to remain at 46.5 points.
Read more Previous

Forex: EUR/USD intensify the downside

The bloc currency is accelerating its descent on Tuesday after the EMU manufacturing PMI dropped to 46.5, below the median and March’s reading at 46.8....
Read more Next
Start livechat