FxWirePro: EUR/JPY pushes higher, yen under pressure as Japan declares state of emergency to stem COVID-19 infections

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.14% higher on the day at 127.13 at around 09:00 GMT, extending previous session's 0.54% gains.

The Japanese yen came under renewed pressure after news that Japan declares state of emergency to stem COVID-19 infections

Japanese Prime Minister Yoshihide Suga declared state of emergency for Tokyo and its three adjacent areas with an aim to stem COVID-19 infections.

The yen which was already under selling pressure in the wake of the prevalent risk-on environment was further dented, pushing crosses higher.

On the data front, German Factory Orders unexpectedly rose in November, suggesting that the manufacturing recovery in Europe’s economic powerhouse is picking up momentum.

German Factory Orders printed at +2.3% on the month vs. -1.2% expected and +3.3% last, the latest data published by the Federal Statistics Office showed on Thursday.

On an annualized basis, Germany’s Industrial Orders were up by 6.3% in November vs. +2.3% previous and -0.1% expectations.

After four consecutive weeks of sideways trade, EUR/JPY is showing signs of breakout of range trade.

Price action is set to extend the 200W MA breakout and is on track to test 61.8% Fib retracement as momentum remains bullish.

On the flipside, 21-EMA is strong support at 126.24. Bullish invalidation only below 200W MA.