Key Highlights
· The euro maintained its bullish bias against the Japanese Yen with support on the downside at 121.00.
· There is a crucial bullish trend line formed with support at 121.30 on the 4-hours chart of EUR/JPY.
· Today in Japan, the Services Purchasing Managers Index (PMI) for April 2017 released by Markit Economics posted a decline from 52.9 to 52.2.
· Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for April 2017 will be released by the Markit Economics, which is forecasted to remain stable at 56.8.
EUR/JPY Technical Analysis
The euro opened green this week against the Japanese yen above 121.00. The EUR/JPY pair currently remains in the bullish zone, and could trade well above 122.00-20 in the near term.
On the downside, there is a major support formed at 120.80 and 121.00. There is also a crucial bullish trend line formed with support at 121.30 on the 4-hours chart.
Moreover, the 38.2% Fib retracement level of the last wave from the 118.91 low to 122.17 high may also act as a barrier for sellers near 120.82.
Overall, the trend is up for EUR/JPY, and the pair might soon break 122.20 for further gains.