FxWirePro: EUR/JPY holds gains above 130 mark, upbeat eurozone PMIs support

EUR/JPY chart - Trading View 

Spot Analysis:

EUR/JPY was trading 0.35% higher on the day at 130.07 at around 09:10 GMT

Previous Week's High/ Low: 131.08/ 129.61

Previous Session's High/ Low: 130.29/ 129.48 

Fundamental Overview:

Eurozone preliminary Manufacturing PMI arrives at 62.6 in July, beating estimates at 62.5.

The bloc’s Services PMI jumped to 181-month highs of 60.4 in July vs. 59.5 expected and 58.3 prior.

The IHS Markit Eurozone Composite PMI expanded further to 60.6 in July vs. 60.0 expected and 59.5 prior. 

German Manufacturing PMI rose to 65.6 in July, while  the services PMI came in at 62.2 for the reported month as against 59.1 estimated. 

Better-than-expected PMIs lend support to the single currency and help offset dovish ECB-led weakness. 

Technical Analysis:

- EUR/JPY is extending choppy trade below 110-EMA 

- The pair is on track to close the week with a Dragonfly Doji formation

- Price action is holding above 200-DMA, weakness only on break below 

- Stochs and RSI have shown a rollover from oversold levels and are biased higher

Major Support and Resistance Levels:

Support - 128.44 (200-DMA), Resistance - 130.46 (110-EMA)

Summary: EUR/JPY has erased most of previous session's losses. Upbeat PMIs help offset ECB-led weakness. Breakout above 110-EMA will see further gains.