EUR/JPY chart - Trading View
Spot Analysis:
EUR/JPY was trading 0.10% higher on the day at 128.82 at around 10:40 GMT
Previous Week's High/ Low: 130.47/ 128.54
Previous Session's High/ Low: 129.49/ 128.33
Fundamental Overview:
Easing energy crisis and a potential US debt ceiling extension lift the market mood, support the pair higher.
Germany industrial output drops sharply by 4% MoM, data by the federal statistics authority Destatis showed earlier on Thursday.
On an annualized basis, the German industrial production rose by a mere 1.7% in August versus 11.4% expected and a 6% growth reported in July.
The bigger-than-expected drop in German August industrial production suggesting that the recovery in Eurozone’s economic powerhouse’s manufacturing sector losing momentum.
Technical Analysis:
- EUR/JPY is consolidating break below daily cloud, outlook is bearish
- MACD is in the negative territory and supports weakness
- GMMA indicator shows major and minor trend are strongly bearish
- Momentum is bearish and volatility is high
Major Support and Resistance Levels:
Support - 128.34 (55-week EMA), Resistance - 129.20 (21-EMA)
Summary: EUR/JPY trades with a bearish bias. Recovery lacks traction, focus on ECB monetary policy minutes for impetus. Break below 128.34 will see test of 127.95 (Channel base).
