FxWirePro: EUR/JPY Edges Lower from Session Highs at 114.74, Intarday Bias Neutral
- EUR/JPY has edged lower from session highs at 114.74, but is holding above 5-DMA at 113.87.
- Poor Chinese data and deteriorating investors’ sentiment likely to keep demand for the Yen intact.
- Data released earlier showed China Caixin Manufacturing PMI stood at 48.6 vs. 49.2 expected and 49.2 last.
- Data from Japan were better than expected. Japan Nikkei manufacturing PMI climbed from previous 47.8 to 48.1 in June.
- Japan May CPI came in at -0.4 % y/y versus -0.5% expected, while the BOJ Q2 Tankan Large Manufacturing Index: came in stronger at 6 versus 4 expected.
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-struggles-at-114-handle-bias-lower-229620) has hit TP1&2.
- The pair hit lows of 113.33 on Thursday before recovering to close in the green at 114.57.
- We see scope for downside in the pair. Break below 5-DMA at 113.87 could see downside upto 111.50.
- On the flipside, break above 114.80 finds next resistance at 115 and then 115.67 (10-DMA).
- Technical indicators are not conclusive, intraday bias is neutral, no trade advised.