FxWirePro: EUR/JPY extends gains amid cooling U.S.-China tensions, euro ignores dismal German data

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.17% higher on the day at 115.29 as the pair extends recovery for the 2nd straight session.

Cooling tensions between the US and China haven seen diminishing bids for the safe haven yen.

The single currency has largely ignored dismal German trade balance and industrial output data and is holding gains across the board. 

Data released by the German statistics office earlier today showed Germany's seasonally adjusted trade surplus totaled EUR12.8 billion in March, missing estimates at EUR18.9 billion. 

German exports dropped 11.8% in March from February's 1.2%, while imports fell 5.1% on month. Economists had forecast a 5.0% decline in exports and 4.0% drop in imports in adjusted terms. 

Dismal trade figures follow Germany's industrial output and manufacturing orders which posted a 9.2% and 15.6% respective drop in March, the largest drops on record.

Technically the pair has entered into a strong bear grip and we do have an signs of reversal. Coronavirus uncertainty to keep any upside capped.

Major Support Levels: 

• S1: 115.26 (78.6% Fib)
• S2: 114.65 (Lower BB)
• S3: 113.71 (Nov 2016 low)

Major Resistance Levels: 

• R1: 115.33 (5-DMA)
• R2: 115.91 (200H MA)
• R3: 116.43 (21-EMA)

Summary: Scope for a deeper pullback well in place. Upticks could be used to accumulate short positions.