Forex Marketz Daily Forex News – Fully Markets Update
The sentiment linked euro currency opened Tuesday against the safe haven Japanese yen on a lower foot. The EUR/JPY currency exchange rate fell lower during the Asian trade session and now appears to be consolidating in a narrow range ahead of PMI data.
Financial and Forex market sentiment is not very good. Traders of the safe haven Japanese yen are watching headlines around China’s trouble real estate firm, Evergrande closely. The incoming Prime Minister of Japan will call for snap elections to attempt and solidify power.
Today’s economic calendar is all about services purchasing managers’ indices. The euro area countries like Germany, France, Italy and Spain will all release their monthly services purchasing managers’ index (PMI).
The European Union will also publish their monthly services purchasing managers’ index. The United Kingdom will also publish their monthly services purchasing managers’ index as well as their monthly composite purchasing managers’ index.
The world’s largest economy, the United States, is also releasing their monthly services purchasing managers’ index and the Institute for Supply Management (ISM) will release their U.S. services purchasing managers’ index.
Daily Euro Currency Technical Analysis
Looking at the above daily EUR/JPY MT 4 price action chart, the 14 day relative strength index (RSI) is looking flat above forty signaling possible trader hesitancy ahead of key economic data. The euro currency is also below the 50, 100 and 200 day simple moving averages.
The EUR/JPY Forex market challenged without success the 50 day simple moving average at 129.40 yen before swing lower towards 129 yen and now below.
The first layer of technical support lines up at the 1 October low of 128.55 yen. The next downside barrier is the 1 July high price level is at 127.49 yen.
On the upside, the 200 day simple moving average lines up at 129.72 yen. The next upside level is at 130 yen with the 29 September high price point at 130.45 yen in play next. The next resistance level lines up at 131 yen.
