The Eurozone PMIs are out today!
Will the numbers affect EUR/JPY’s uptrend?
Before you place any orders, make sure you’re updated with the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- U.S. stocks fall on worries about capital-gains taxes
- U.S. weekly jobless claims hit 13-month low; home sales tumble
- ECB head: Europe “on crutches,” still needs robust stimulus
- UK consumer sentiment touches 13-month high: GfK
- Australia’s manufacturing hits highest mark on record; services PMI rises to its fastest pace in April
- Japan’s March core consumer prices fall for 8th straight month
- Japan’s factory activity improves in April but more virus measures loom
- Asian shares shake off U.S. tax worries, cryptocurrencies plunge
- UK retail sales surge before lockdown easing, borrowing leaps too
Upcoming Potential Catalysts on the Economic Calendar:
- Eurozone’s flash manufacturing and services PMIs at 8:00 am GMT
- U.K.’s flash manufacturing and services PMIs at 8:30 am GMT
- U.S. flash manufacturing and services PMIs at 1:45 pm GMT
- U.S. new home sales at 2:00 pm GMT
What to Watch: EUR/JPY
EUR/JPY is trading near a trend line that has been holding as support since mid-January.
Euro bulls might pay closer attention today because the current prices are also near the 100 and 200 SMAs on the 4-hour time frame.Today’s Eurozone PMIs could present a challenge to the bulls. I told y’all earlier this week that the markets are expecting some pullback after March’s strong manufacturing and services PMIs.
If the numbers surprise to the upside, then EUR/JPY could extend its uptrend and retest the range resistance that we’re seeing on the chart.
But if traders continue to worry about Biden’s capital gains tax, or if euro bears are still salty about the ECB’s plans to keep its monetary policies accommodative when central banks like Canada are talking tightening, then EUR/JPY could finally break below its trend line support to retest areas of interest like 129.40 or the 129.00 MaPs.