EURJPY pared most of its gains as yen showed a minor pullback. Intraday remains bearish as long as the resistance at 182 holds.
With manufacturing contracting further at 48.4 (well below the anticipated 49.5 and down from 49.6) due to diminishing new orders and ongoing job cuts, Germany's flash November 2025 PMI data clearly showed a significant setback. Services growth decreased considerably to a two-month low of 52.7 (missing 53.9). The composite PMI fell to 52.1 from 53.9, representing the weakest private-sector expansion in two months and indicating a deteriorating outlook for Europe's largest economy, as persistent industrial weakness increasingly offsets the receding momentum in services.
Technical Analysis:
The EUR/JPY pair is trading below 55 EMA, and above 200 and 365-H EMA on the 1-hour chart.
- Near-Term Resistance: Around 180.75, a breakout here could lead to targets at 181.20/181.70/182.
- Immediate Support: At 180, if breached, the pair could fall to 179.60/179/178.40/178/177.25/176/175.20.
Indicator Analysis (1-hour chart):
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Overall, the indicators suggest a bearish trend
Trading Recommendation:
It is good to sell on rallies around 180.68-70 with a stop loss at 182 for a TP of 178/177.25.
