FxWirePro: EUR/JPY extends break above 55-EMA, upbeat German data buoys single currency

EUR/JPY chart - Trading View

EUR/JPY was trading 0.23% higher on the day at 123.92 at around 10:50 GMT, extending previous session's gains.

The single currency was buoyed across the board after upbeat German GDP and IFO Business Climate data.

Germany's Gross Domestic Product figures for the third quarter printed at 8.5% compared with 8.2% originally reported. 

Further, German IFO business climate came at 90.7 in line with expectations. Current Economic Assessment arrived at 90.0 as compared to last month's 90.3 and 87.2 anticipated.

The IFO Expectations Index came in at 91.5 for November, worse than a fall to 93.5 expected and compared to the previous month’s 95.0 reading.

EUR/JPY grinds higher on the day, but major trend remains neutral. Dovish stance from the ECB and the potential announcements of extra stimulus in December could see re-emergence of the caution among investors.

Technical analysis does not provide a clear directional bias. Cloud offers major resistance, any bullish continuation only on decisive break above.

The pair has found strong support at 20-DMA. A decisive break below will see downside resumption. Scope then for dip till 200-DMA.