FxWirePro: EUR/JPY inches closer towards 200-DMA, downbeat German Manufacturing PMI has little impact

EUR/JPY chart - Trading View 

Spot Analysis:

EUR/JPY was trading 0.38% higher on the day at 128.91 at around 08:30 GMT.

Previous Week's High/ Low: 129.43/ 127.93

Previous Session's High/ Low: 128.52/ 127.94

Fundamental Overview:

Data published by IHS/Markit research showed earlier on Monday that German manufacturing sector slows its pace of expansion in August, but holds firmly inside growth territory.

German Manufacturing PMI came in at 62.7 in August vs. 65.0 expected and 65.9 prior. Services PMI dropped from a record high of 61.8 to 61.5 in August as against 61.0 estimated.

IHS Markit Flash Germany Composite Output Index arrived at 60.6 in August vs. 62.2 expected and July’s 62.4, its lowest level in two months.

Technical Analysis:

- EUR/JPY largely unfazed by the downbeat German Manufacturing PMI data

- Price action hovers around 200H MA and trades just shy of 129 handle

- RSI has turned and is now biased higher, Stochs are on verge of bullish rollover from oversold levels

- MACD is on verge of bullish crossover on signal line

- The pair has broken above 5-DMA and 200H MA

- GMMA indicator shows near-term trend is bullish, while major trend is turning bullish

Major Support and Resistance Levels:

Support - 128.44 (5-DMA), Resistance - 129.07 (200-DMA)

Summary: EUR/JPY is extending gains for the 2nd straight session and is edging closer towards 200-DMA. Decisive break above will push the pair higher.