FxWirePro: EUR/JPY grinds higher ahead of eurozone Service PMIs, outlook bullish
EUR/JPY chart - Trading View
EUR/JPY was trading 0.12% higher on the day at 129.13 at around 07:00 GMT, after closing 0.28% higher in the previous session.
The Japanese yen depressed by poor Japanese Services PMI and improving risk-on. Vaccine optimism joins hopes of a rate cut from the Chinese central bank, favouring risk.
The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) deepened further into contraction, printing at a seasonally adjusted 46.3.
EUR/JPY trades with a strong bullish bias. The pair is extending gains for the 4th straight week and has edged above 61.8% Fib.
Technical indicators support upside. Momentum bullish and rising volatility is likely to buoy prices higher.
The single currency remains bid ahead of euro area services PMI data. Scope for test of 200-month MA at 130.31.
200H MA at 128.49 is strong support. Any dip in price action below 200H MA will see further downside. Bullish invalidation only below daily cloud.