FxWirePro: EUR/JPY extends gains above 200-DMA, euro shrugs off downbeat German data

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading  0.61% higher on the day at 141.18 at around 11:00 GMT

Previous Week's High/ Low: 142.93/ 139.98

Previous Session's High/ Low: 141.35/ 139.96

Fundamental Overview:

Euro area inflation report showed that the annual HICP declined to 9.2% in December from 10.1% in November.

Data released by Destatis showed on Friday that Germany's Retail Sales rose by 1.1% MoM in November versus 1.0% expected and -2.8% previous.

On an annualized basis, the bloc’s Retail Sales dived by 5.9% in November versus the -2.5% expected and a 5.0% drop recorded in October.

The German Factory Orders came in at -5.3% on the month vs. -0.5% expected and 0.6% prior. Data suggested that the manufacturing sector recovery has lost momentum.

On an annualized basis, Germany’s Industrial Orders arrived at -11.0% in the reported month vs. -7.0% expected and -3.3% previous.

Technical Analysis:

- The pair has retraced dip below 200-DMA

- Price action has ignore inverted hammer in the previous session, edged above 200H MA

- Momentum is turning bullish, RSI is biased higher

- MACD is on verge of bullish crossover on signal line

Major Support and Resistance Levels:

Support - 140.52 (200-DMA), Resistance - 141.60 (21-EMA)

Summary: EUR/JPY has retrace dip below 200-DMA, raising scope for further gains. Next immediate resistance lies at 21-EMA, break above will fuel further gains.