Sell EURJPY on rallies

EURJPY pared most of its gains on board-based Euro weakness. It hit a low of 159.11 and is currently trading around 159.13.

The Euro declined sharply after dismal Euro area PMI data. German flash manufacturing and services PMI in Sep came at 40.30 and 50.6, below forecast of 42.40 and 51.10.

Technicals-
 The pair is trading below  34- and 55 EMA in the 1-hour chart.
 
The near-term resistance is around 159.50, a breach above targets 160/160.57/161.20. Intraday bias remains weak as long as resistance 160 holds. Major bullish continuation only above 163.87. The immediate support is at 159, any violation below will drag the pair to 158.57/158/157.75/157.25/156.75.

 Indicator (1- Hour chart)
 
CCI (14)- Bearish
 
CCI (50)- Bearish
 
Average directional movement Index - bearish. All indicators confirm a bearish trend.
 
It is good to sell on rallies around 159.27-30 with SL around 160 for a TP of 157.