After reaching this week’s high of 1.2380 early on Thursday, EUR/JPY started a new decline. This fall was caused by disappointing Markit PMI data for the Euro zone and Germany. As a result, the pair dashed through the 200-hour SMA and the weekly PP.
Some bullish pressure was introduced late in the evening when the US Dollar weakened in response to new tariffs on China imposed by the Trump administration. The Euro found support at the 55– and 100-hour SMAs circa 1.23 and was trading near 1.2335 at the time of this analysis.
From technical point of view, the pair should push for the trend-line and the 23.60% Fibo at 1.2360. It is likely that the pair remains stranded between this line and the SMAs prior to US fundamentals.
The general tendency is likely to remain upwards closer to 1.24.
