FxWirePro: EUR/JPY holds marginal gains, downbeat German industrial figures have little impact

Chart - Courtesy Trading View 

EUR/JPY was trading 0.15% higher on the day at 131.03 at around 09:15 GMT.

The pair is holding marginal gains despite an unexpected drop in German Industrial Production.

Data released earlier on Friday showed Germany's industrial output fell by 0.2% MoM in Nov, versus a 1.0% rise expected and 2.4% last.

On an annualized basis, the German industrial production declined by 2.4% in November versus a 0.9% drop registered in October.

Price action is consolidating break above 200-DMA. Momentum indicators are bullish. Volatility is high and rising. 

Focus now on eurozone inflation data. Core CPI is expected at 2.5% on a yearly basis in December, down from 2.6% in November. The annual CPI is forecast to edge lower to 4.7% from 4.9%.

Support levels - 130.91 (5-DMA), 130.52 (200-DMA)

Resistance levels - 131.15 (61.8% Fib), 131.89 (Upper BB)

Summary: EUR/JPY trades with a bullish bias. Weakness only below 200-DMA. Break above 61.8% Fib will see further upside.