FxWirePro: EUR/JPY edges lower from session highs after German IFO Business Climate unexpectedly drops to 98.8 in Sept

EUR/JPY chart - Trading View 

Spot Analysis:

EUR/JPY was trading largely unchanged at 129.48 at around 08:15 GMT

Previous Week's High/ Low: 130.19/ 128.60

Previous Session's High/ Low: 129.54/ 128.27

Fundamental Overview:

The headline German IFO Business Climate Index unexpectedly dropped in September, denting the single currency.

German IFO Business Climate unexpectedly drops to 98.8, missing estimates at 100.4 and compared to last month's 99.4.

Current Economic Assessment arrived at 100.4 points in the reported month as compared to last month's 101.4 and 100.8 anticipated.

The IFO Expectations Index dropped to 97.3 from the previous month’s 97.5 reading and worse than the market expectations of 100.0.

On the other side, improving market mood weighed on safe havens like the yen and lifting pair higher.

Technical Analysis:

Price action has re-entered the daily cloud, hovers around 200-DMA, decisive break above will fuel further gains in the pair. 

Rejection at 200-DMA will negate any upside in the pair. 128.30 is major support for the pair. Breach below will see downside continuation. 

Major Support and Resistance Levels:

Support - 128.78 (5-DMA), Resistance - 129.62 (200-DMA)

Summary: EUR/JPY pivotal at 200-DMA. Watch out for decisive break above for further bullishness. Next major hurdle lies at 21-week EMA at 129.94.