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Forex: EUR/JPY spikes down to 128.83 on German IFO

FXstreet.com (Barcelona) - The EUR/JPY tumbled on the release of a disappointing German IFO survey, falling below the 129.00 handle and reaching as low as 128.83 in a spike movement. The cross is back above 129.00, as of writing.

On the EUR front, the German IFO survey came in lower than expected for the April report: drop from 106.7 to 104.4 in business climate (consensus of 106.2), fall from 109.9 to 107.2 in current assessment (consensus of 109.5) and drop from 103.6 to 101.6 in expectations (consensus of 103.0). Italy retail sales are also out, contracting by -0.2% in March instead of rising 0.4% as expected, with annualized data falling further from -2.8% to -4.8%.

On the JPY front, Sumitomo Life said that is planning to take a flexible stance in foreign bond investment and expects the EUR/JPY to trade between 108.00 and 145.00 in 2013/2014. Japan corporate service price fell -0.2% in March.

Mataf.net analysts point to resistance at 129.70, 130.10 and 130.65. On the downside, supports might be found at 128.85, 128.25 and 127.90.

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