During the Wednesday session, global investors received preliminary readings of economic activity indicators in Europe and the USA. In connection with the observed boom in the Eurozone and solid December readings, today's data also did not disappoint. After yesterday's higher than expected market consensus indicating the ZEW index from Germany, today we also had solid readings from the local economy. The PMI index for the industrial sector fell to 61.2 pts. from 63.3 points, however, it still remains above the barrier of 60 points. In turn, the German PMI index for the services sector increased above expectations to 57.0 pts. in January from 55.8 pts in the previous period. A similar trend could be observed in the entire Eurozone, where the PMI index for the industry fell to 59.6 pts. from 60.6 points and its equivalent for services increased above market consensus to 57.6 points. from 56.6 points. This high level of performance of the PMI indicators supports the positive sentiment towards the future of Eurozone economy.
Let's now take a look at the EUR/JPY technical picture at the H4 time frame. The recent V-shape reversal from he level of 113.00 did not bring any new highs as the market stalled below the level of 136.31 and now is consolidating the recent gains. The momentum is still hovering around its fifty level and the stochastic indicator is even below that level as it approaches the oversold zone. The nearest technical support is seen at the level of 134.97.
