EUR/JPY drops on weak PMI figures

EUR/JPY drops on weak PMI figures
FXStreet (Mumbai) – The EUR/JPY pair dropped to a session low of 135.52 after the preliminary Markit PMI data showed the private sector activity in Germany and across the Eurozone dropped to two-month lows.

EUR/JPY: trades below hourly 50-MA

The pair slipped below the hourly 50-MA currently located at 135.73. The EUR bears were back in the game after the German manufacturing PMI in June fell to a two-month low of 51.5. The losses were extended further after the data showed Eurozone private sector activity fell to a two-month low, but still remained close to 4-year high in July.

At the moment, the markets have ignored the fact that despite the Greek crisis the activity has stayed close to 4-year high. The spot currently trades around 135.55; down 0.42% lower. Ahead in the day, the pair could continue to witness losses, especially if the Wall Street turns lower on earnings.

EUR/JPY Technical Levels

The immediate support is seen at 135.33 (hourly 200-MA) followed by another support at the psychological level of 135.00. On the flip side, resistance is seen at 135.73 (hourly 50-MA) and 136.43 (previous session’s high).
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EUR/JPY drops on weak PMI figures
Source: FXStreet