2 Jun 2014
EUR/JPY extends pullback on disappointing PMIs
FXStreet (Córdoba) - The EUR/JPY extended its pullback from daily highs and completely erased intraday gains after data showed Eurozone and German PMI dropped more than expected in May.
German PMI showed manufacturing expansion decelerated in May with the index dropping to 52.3 versus 54.1 the previous month and 52.9 expected. As for the Eurozone as a whole, PMI fell to 52.2 against 53.4 in Apr and 52.5 forecasted. The EUR/JPY edged even lower after data, hitting a fresh session low of 138.69 after failing to sustain gains above 139.00.
EUR/JPY levels to watch
At time of writing, the EUR/JPY is trading at 138.70, virtually unchanged on the day, with immediate supports now seen at 138.65 (Jun 2 low), 138.26 (200-day SMA) and 138.00 (psychological level). On the other hand, resistances could be found at 139.11 (Jun 2 high), 139.35 (May 27 high) and 139.43 (May 16 high).
German PMI showed manufacturing expansion decelerated in May with the index dropping to 52.3 versus 54.1 the previous month and 52.9 expected. As for the Eurozone as a whole, PMI fell to 52.2 against 53.4 in Apr and 52.5 forecasted. The EUR/JPY edged even lower after data, hitting a fresh session low of 138.69 after failing to sustain gains above 139.00.
EUR/JPY levels to watch
At time of writing, the EUR/JPY is trading at 138.70, virtually unchanged on the day, with immediate supports now seen at 138.65 (Jun 2 low), 138.26 (200-day SMA) and 138.00 (psychological level). On the other hand, resistances could be found at 139.11 (Jun 2 high), 139.35 (May 27 high) and 139.43 (May 16 high).