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EUR/JPY ignores German data, awaits Kuroda

FXStreet (Mumbai) - The EUR/JPY pair showed little reaction to the weak German industrial production figure as investors await the comments from the Bank of Japan governor Kuroda.

Supported by hourly 50-MA

The pair sought support of the hourly 50-MA in early Asian session today and currently trades above the 23.6% retracement of 133.436-135.71 located at 135.178. The German industrial production fell 1.2% m/m in August. However, the pair did not react to the data.

The focus now shifts to the Bank of Japan Kuroda’s comments. Investors would be interested to know if Kuroda hints at a possible easing at the October meeting or plays down the need to do more.

EUR/JPY Technical Levels

At 135.20, the immediate resistance is seen at 135.71 (Oct 5 high), followed by a major hurdle at 135.84 (50-DMA) and 136.37 (100-DMA). On the downside, a re-test of 200-DMA at 134.79 seems likely in case the spot takes out 135.17 (23.6% retracement of 133.436-135.71).

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The EUR/USD pair remains confined within familiar ranges, although dipped to fresh session lows after the German industrial output fell sharply in August, far below expectations.
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German industrial production disappoint the markets - ING

Carsten Brzeski, Research Analyst at ING, notes that the recently released German industrial production disappointed in August, dropping by 1.2% MoM, from +1.2% MoM in July. However, on an annual basis, industrial production is still up by 2.3%.
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