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FxWirePro: EUR/JPY extends declines from 3-month highs, euro depressed after poor German, EMU Manufacturing PMIs

EUR/JPY chart - Trading View 

EUR/JPY was trading unchanged at around 119.61 at 09:35 GMT, Doji formation seen on the daily chart till now.

The pair is consolidating breakout at 200-DMA and channel top seen last week, bias remains bullish.

Euro under slight pressure after both German and EMU manufacturing PMIs printed a tad below the preliminary readings for the month of May.

That said, positive sentiment surrounding the re-opening of economies in Europe and news of an aid package proposed by the European Commission could keep downside limited.

Technical indicators are biased higher and channel and 200-DMA breakout reinforce upside in the pair.

Stiff resistance on the upside is seen at 55W EMA at 120.23. Break above will confirm upside continuation. Jump till 121 levels then likely.

On the flipside, overbought oscillators could cause pullbacks in the pair. Retrace below 200-DMA dents upside.

Support levels - 119.26 (200-DMA), 118.63 (50% Fib), 118.45 (110-EMA)

Resistance levels - 120.23 (55W EMA), 120.87 (76.4% Fib), 121.90 (88.6% Fib)

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