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The Euro was seen trading higher against the Japanese yen, as the FX market sentiment favoured more gains. However, the upside was stalled around the 148.09 level in the EURJPY pair. It is now correcting lower toward an important support area of 147.45 where there is a chance that the Euro buyers might appear. There is a major release lined up in an hour, as the Euro area manufacturing PMI will be published. The market is expecting it to decline from 50.6 to 50.4. If the outcome comes out positive then there is chance that the Euro might spike higher.

There is an important bullish trend line formed on the hourly chart of the EURJPY pair, which could act as a barrier for the Euro sellers in the short term. The pair is currently testing the 38.2% fib retracement level of the last leg from the 146.41 low to 148.09 high. The mentioned fib level is almost coinciding with the highlighted trend line. If the pair dips from the current levels, then there is a possibility that the pair might find buyers around the 147.30-40 support area. There are two more important supports around the highlighted trend line in the form of 100 and 200 simple moving averages.

On the upside, the first and important resistance is around the last high of 148.09 where the pair might struggle again. Any further strength might take it towards the 148.50 level.

Overall, one might consider buying dips around the bullish trend line as long as the pair is trading above the 100 MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – – http://ikofx.com/