FxWirePro: EUR/JPY fails at cloud top, slips below 5-DMA

Chart - Courtesy Trading View 

EUR/JPY is extending downside for the second consecutive session after failing to break above the daily cloud.

The pair was trading 0.37% lower on the day at 143.61 at around 11:05 GMT, after closing 0.62% lower in the previous session.

Downbeat Eurozone Industrial Production data and Germany's Ifo Economic Institute's forecasts weigh on the single currency.

Data published by Eurostat earlier on Wednesday showed Industrial Production in the euro area contracted by 2.0% MoM in October, more than market expectation for a 1.5% decline.

On an annual basis, Industrial Production in the euro area grew by 3.4%, down from the 5.1% expansion recorded in September.

Further, Germany's Ifo Economic Institute said on Wednesday that the German economy is expected to contract by 0.1% in 2023.

EUR/JPY has slipped below 5-DMA. A Gravestone Doji formation on the weekly candle till date raises scope for more pullbacks.

The pair eyes 23.6% Fib at 142.73. Break below daily cloud will see more weakness. On the flipside, breakout above cloud required for upside continuation.