EUR/JPY falters near three-year highs, bounces in Tokyo near 136.90

• EUR/JPY off recent three-year highs, but still strong.
• EU Markit PMIs beginning at 08:15 GMT.

EUR/JPY found a brief lift in the early Tokyo session after opening the week down from the previous week's close. Price is currently trading near the 136.90 area after positive PMI data from China lifted the Asiatic major currencies in the early markets.

EUR/JPY will be greeted by a slew of European Markit PMI data early today, with Spanish, Italian, French, and German Markit PMIs all printing between 08:15 and 08:55 GMT, finishing with the EU average Markit PMI at 09:00. Since Germany makes up such a large part of Europe's industrial power, the notable data will be the German and Europe PMIs beginning at 08:55. Market forecasts broadly expect Markit data to show little to no growth, so an upside surprise in manufacturing could lift the Euro early in the day if nothing shocking comes from today's Tokyo session.

EUR/JPY Technicals

The Euro has been in a dedicated uptrend against the Yen for over 15 months now on Daily charts, with the pair currently trading near 3-year highs. Pattern traders looking at large timeframes will note the ascending channel that has formed over the past few months, and if price turns around from here can expect to find the other end of the channel near the 135.00 handle. Intraday traders will be hoping for a Markit beat or flop to provide price the gas it needs to run during London, as the Tokyo session is particularly news-devoid.

Today's pivot points:
R2: 137.96
R1: 137.59
PP: 13713
S1: 136.76
S2: 136.29