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Forex Market: EUR/JPY daily forecast

During Friday’s trading session EUR/JPY traded within the range of 138.09-138.88 and closed at 138.76.

At 7:37 GMT today EUR/JPY was gaining 0.01% for the day to trade at 138.77. The pair touched a daily high at 139.13 at 3:40 GMT, breaching the first key resistance.

Fundamental view

The final manufacturing Purchasing Managers’ Index (PMI) in the Euro zone probably remained unchanged at 52.5 in May, matching the preliminary reading estimated on May 22, according to the median forecast 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 research group Markit Economics will release the official figures at 8:00 GMT.

Technical view

Screenshot from 2014-06-02 10:42:52

According to Binary Tribune’s daily analysis, in case EUR/JPY manages to breach the first resistance level at 139.06, it will probably continue up to test 139.37. In case the second key resistance is broken, the pair will probably attempt to advance to 139.85.

If EUR/JPY manages to breach the first key support at 138.27, it will probably continue to slide and test 137.79. With this second key support broken, the movement to the downside will probably continue to 137.48.

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