February 21st 2020

The Eurozone Manufacturing PMI rebounded in February but remains below 50.0, indicating the recession is ongoing. German data led the rebound while France contracted below 50.0. Adding worries for the Euro is the slowdown in the German services sector. The EURJPY lost bullish momentum inside of its horizontal resistance area, where will price action move from here? Today’s fundamental analysis will take a look at price action in both directions.

Japanese PMI data plunged as expected, indicating reading below 50.0 across the board. The spread of the coronavirus is showing impacts on the volatile domestic economy. Forex traders opt to ignore economic issues in Japan and favor the safe-haven status of the Japanese Yen. Will bears force a sharp sell-off in the EURJPY, or can bulls pressure this currency pair higher? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.