EUR/JPY Outlook (23 September 2021)

#OPINIONLEADER# #Eurozone#

ByJin Dao Tai

 SEP 23, 2021

Overall, EUR/JPY is ranging across. Recently, EUR/JPY moved up into the resistance zone of 128.500.

The French flash PMI data will be released later at 1515 (SGT).

• French Flash Manufacturing PMI (Forecast: 57.1, Previous: 57.5 revised from 57.3)
• French Flash Service PMI (Forecast: 56.1, Previous: 56.3 revised from 56.4)

The German Flash PMI data will be released later at 1530 (SGT).

• German Flash Manufacturing PMI (Forecast: 61.3, Previous: 62.6 revised from 62.7)
• German Flash Services PMI (Forecast: 60.3, Previous: 60.8 revised from 61.5)

The eurozone flash PMI data will be released later at 1600 (SGT).

• Flash Manufacturing PMI (Forecast: 60.4, Previous: 61.4 revised from 61.5)
• Flash Services PMI (Forecast: 58.4, Previous: 59.0 revised from 59.7)

During the monetary policy meeting yesterday, the Bank of Japan held its monetary policy unchanged.

Japanese banks will be closed today in observance of Autumnal Equinox Day. Expect lower trading volume and volatility during the usual Japanese market hours.

The Japanese National Core CPI y/y data (Forecast: 0.0%, Previous: -0.2%) will be released tomorrow at 0730 (GMT+8).

Also, the Flash Manufacturing PMI data (Forecast: 52.5, Previous: 52.7 revised from 52.4) will be released tomorrow at 0830 (GMT+8).

Currently, EUR/JPY is testing the resistance zone of 128.500 and the next support zone is at 127.200.

Look for short-term selling opportunities of EUR/JPY if it rejects the resistance zone of 128.500.