There has been a sharp drop in the Euro crosses on the verge of worse than expected economic events. Many of the fundamental outcomes from the Eurozone missed their forecast, adding further pressure on the European Central Bank to keep monetary policy accommodative.
According to reports, Germany’s private sector marks a moderate increase in April as rebounding services performance continues to offset manufacturing weakness.
The Germany Flash Composite Output Index edged up from a 69-month low of 51.4 in March to 52.1 in April. While the German Flash Manufacturing PMI slid to 44.5 vs. 45.2.
EUR/JPY met resistance at the triple top resistance level around 126.750. The Moving Average has recently formed a “dead cross” with the 20 and 50-days EMA.
Key Trading Level: 125.9
Given the fact that EUR/JPY is oversold on lower timeframes, it will likely gain support above bullish trendline support of 125.640. It’s the same level the provided resistance to EUR/JPY on April 9. Below 125.650 the immediate support is likely to be 124.900. All the best!