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FxWirePro: EUR/JPY tests 21-EMA at 132.50, upbeat German PMIs boost euro

EUR/JPY chart - Trading View 

Spot Analysis:

EUR/JPY was trading 0.25% higher on the day at 132.42 at around 09:45 GMT

Previous Week's High/ Low: 133.68/ 130.61

Previous Session's High/ Low: 132.19/ 131.21

Fundamental Overview:

The preliminary manufacturing activity report from IHS/Markit research showed German manufacturing sector unexpectedly quickened its pace of expansion in June. 

German Manufacturing PMI printed at 64.9 in June vs. 63.0 expected. German Services PMI rose to 58.1 in June beating forecasts at 55.5.

The IHS Markit Flash Germany Composite Output Index rebounded to hit 123-month highs, arriving at 60.4 in June vs. 57.5 expected and May’s 56.2.

Technical Analysis:

EUR/JPY is extending gains for the 3rd straight session

Pullback in price action has bounced off daily cloud and 110-EMA support

Stochs and RSI have rolled over from oversold levels

GMMA indicator shows major trend is bullish on the daily and weekly charts

Summary: Major trend in the pair is bullish. Pullback on account of bearish divergence has found strong support at 110-EMA and daily cloud. The pair is hovering around 78.6% Fib at 132.56. Scope for test of 88.6% Fib at 134.87.

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