European fundamental data has revealed a weakening economic outlook. Germany, Europe’s

Largest economy and industrial hub leads the way to the downside as far as manufacturing

PMI is concerned and remains within a technical recession. The ECB will no doubt be hoping

That the effect of prior tightening and base effects are enough to see meaningful declines in

Core inflation throughput the euro zone. If that materializes, the ECB would be able to soften

Their hawkish rhetoric and possibly favour a pause in the not too distant future. In this

Scenario, EUR/JPY has the potential to accelerate recent losses.

The next level of support appears at @ 155.354(0.5%)

From resistance level @ 156.136 (0.786% fib ret). Given the trend in European data, there

Could well be more selling yet.

By Admin

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