FxWirePro: EUR/JPY edges higher, euro bid despite downbeat German Factory Orders data

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.14% higher on the day at 131.78 at around 06:30 GMT, edges higher from session lows at 131.42.

The single currency remains bid despite poor German data. The recently improving data from the bloc and Germany’s push for monetary policy consolidation are the key catalysts to keep Euro buyers optimistic.

The latest data published by the Federal Statistics Office showed on Tuesday that German Factory Orders unexpectedly fell in May, arrived at -3.7% on the month vs. 5.0% expected and -0.2% last.

On an annualized basis, Germany’s Industrial Orders rose by 54.3% in the reported month vs. 80.2% previous and expected growth of 75.4%.

Technical bias is neutral. Price action is within the daily cloud. 55-EMA is seen as stiff resistance for the pair, decisive break above will fuel further upside.

Next major hurdle for bulls lies at 132.10 (Nearly converged 21-EMA and 20-DMA) ahead of 132.71 (cloud top).

On the flipside, rejection at 55-EMA and break below daily cloud will negate upside bias. Scope then for test of 38.2% Fib at 129.34.