Forex Market: EUR/JPY daily forecast

During yesterday’s trading session EUR/JPY traded within the range of 141.22-141.78 and closed at 141.71.

At 6:57 GMT today EUR/JPY was gaining 0.14% for the day to trade at 141.86. The pair touched a daily high at 142.00 at 6:12 GMT, managing to breach the first resistance level of 141.92.

Fundamental view

The advance manufacturing Purchasing Managers’ Index (PMI) in the euro zone will probably remain unchanged at 53.0 in April, matching March’s reading, according to the median estimate by experts. The index is based on a monthly survey, which includes carefully selected companies that are representative of the state of the private sector in the economy and track the changes in production, new orders, market share, employment and prices in the manufacturing sector. The PMI is the first economic indicator for each month, providing information on the changing economic conditions, significantly earlier than the official state statistics. It is presented as a scale from 1 to 100. Readings above 50 are connected with a positive outlook for economic growth. Conversely, values ​​below 50 indicate a less optimistic forecast. This is a preliminary value of the indicator.

The advance services PMI probably improved to 52.5 in April from 52.2 in the previous month, according to the median analyst’ estimate. The index is also based on a monthly survey, and shares the same characteristics with the manufacturing PMI, with the only difference that it measures economic activity in the services sector. This is a preliminary assessment of the indicator.

Markit Economics is scheduled to release an official report at 08:00 GMT. Higher-than-expected readings would provide support for the euro.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/JPY manages to breach the first resistance level at 141.92, it will probably continue up to test 142.13. In case the second key resistance is broken, the pair will probably attempt to advance to 142.48.

If EUR/JPY manages to breach the first key support at 141.36, it will probably continue to slide and test 141.01. With this second key support broken, the movement to the downside will probably continue to 140.80.