EUR/JPY Outlook (26 July 2021)

#OPINIONLEADER#

ByJin Dao Tai

 JUL 26, 2021

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY moved into the resistance zone of 130.000.

The French flash PMI data released last Friday indicated continued expansion in business activities albeit at a slower rate.

• French Flash Manufacturing PMI (Actual: 58.1, Forecast: 58.4, Previous: 59.0 revised from 58.6)
• French Flash Service PMI (Actual: 57.0, Forecast: 58.7, Previous: 57.8 revised from 57.4)

The German Flash PMI data released last Friday indicated a record high in the pace of expansion of the services sector while the manufacturing sector continues to expand at a faster pace.

• German Flash Manufacturing PMI (Actual: 65.6, Forecast: 64.2, Previous: 65.1 revised from 64.9)
• German Flash Services PMI (Actual: 62.2, Forecast: 59.4, Previous: 57.5 revised from 58.1)

The eurozone flash PMI data released last Friday indicated that the services sector expanded at a 15-year high pace while the manufacturing sector continued to expand albeit at a slightly slower pace.

• Flash Manufacturing PMI (Actual: 62.6, Forecast: 62.6, Previous: 63.4 revised from 63.1)
• Flash Services PMI (Actual: 60.4, Forecast: 59.4, Previous: 58.3 revised from 58.0)

The German ifo Business Climate data (Forecast: 102.3, Previous: 101.8) will be released later at 1600 (GMT+8).

Currently, EUR/JPY is testing the resistance zone of 130.000 and the next support zone is at 128.500.

Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 130.000.