FxWirePro: EUR/JPY holds gains above 5-DMA, euro ignores disappointing German factory data

Chart - Courtesy Trading View 

EUR/JPY was trading 0.28% higher on the day at 137.44 at around 09:40 GMT, extends gains for the third straight session.

The single currency remains unfazed by disappointing German factory data, holds gains above 5-DMA.

Data released earlier on Thursday showed German Factory Orders fell sharply in March, suggesting that German manufacturing sector is seeing a fresh downturn.

Contracts for goods ‘Made in Germany’ declined by 4.7% on the month vs. -1.1% expected and -0.8% in the prior month.

On an annualized basis, Germany’s Industrial Orders fell by 3.1% in the reported month vs. 4.3% previous.

The Bank of Japan has vowed to keep its existing ultra-loose policy settings and conduct unlimited bond purchase operations to defend its “near-zero” target for 10-year yields, keeping the yen under pressure.

EUR/JPY downside on account of bearish RSI divergence has retraced above 21-EMA. Major trend in the pair is bullish.

Retrace above 21-EMA has raised scope for upside resumption. Next major bull target is 140 (yearly high).