EUR/JPY slips ahead of London markets, pulls back from 137.09

• EUR/JPY loses bullish moment from Asia as Europe comes online.
• EU PMIs beginning at 08:15 to set tone for the week.

EUR/JPY is sinking heading into European markets, trading into the 136.90 region after reaching an Asia session high of 137.09. Risk-asset currencies like the Euro could be poised to suffer today as the global equity retreat shakes traders out of their bullish positions and into safer assets.

Traders 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