#OPINIONLEADER#

ByJin Dao Tai

 APR 26, 2021

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke above the key level of 130.

The series of eurozone flash PMI data released last week was overall very positive. The services sector in France and the eurozone in general recovered into the expansionary level. The eurozone manufacturing sector continues to expand at a faster pace.

• French Flash Service PMI (Actual: 50.4, Forecast: 46.6, Previous: 48.2 revised from 47.8)
• French Flash Manufacturing PMI (Actual: 59.1, Forecast: 59.0, Previous: 59.3 revised from 58.8)
• German Flash Services PMI (Actual: 50.1, Forecast: 51.1, Previous: 51.5 revised from 50.8)
• German Flash Manufacturing PMI (Actual: 66.4, Forecast: 65.8, Previous: 66.6)
• Flash Manufacturing PMI (Actual: 63.3, Forecast: 62.0, Previous: 62.5 revised from 62.4)
• Flash Services PMI (Actual: 50.3, Forecast: 49.1, Previous: 49.6 revised from 48.8)

The German ifo Business Climate data (Forecast: 97.8, Previous: 96.6) will be released later at 1600 (SGT).

The Bank of Japan (BoJ) will be announcing their monetary policy decision tomorrow at a tentative timing. It is expected that the central bank will be holding interest rate unchanged at -0.10%. With the recent spike in COVID-19 cases in Japan, pay attention to whether the BoJ is considering to carry out further monetary policy easing to cushion the Japanese economy from the negative impact.

The central bank will also be holding a press conference after the announcement at a tentative timing. During this time, there may be volatility in JPY.

EUR/JPY’s next support zone is at 128.500 and the next resistance zone is at 130.800.

Look for selling opportunities of EUR/JPY.

Be sure to follow me on Twitter at @jdtai and on TradingView at Jin_LCMSTraders for my latest post!