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Forex: EUR/JPY at 127.80/128.00 range after German data

FXstreet.com (Barcelona) - Following the jump to 128.46 high on Japan economic indicators, the EUR/JPY became heavier and eased below the 128.00 handle to find support around 127.80 as German retail sales disappointed. There are extra 4K unemployed in Germany in April, instead of the expected 2K, but the unemployment rate remains at 6.9%. The EUR/JPY remains below 128.00.

German retail sales are already out, down -0.3% in March (MoM) to an annualized drop from -2.6% to -2.8%, lower than market consensus of 0.0% (MoM) and -1.2% (YoY). The German GfK May consumer confidence rose from 6.0 to 6.2, beating 5.9 consensus.

The Spanish estimate GDP Q1 came in line with expectations, at -0.5 (QoQ) and -2.0 (YoY). French Producer Prices eased from 0.5% to 0.0% in March, staying above the -0.1% consensus. Consumer spending beat expectations of 0.1% by rising from -0.2% to 1.3%.

Japan’s vehicle production fell from -15.1% to -16.4% in March, while housing starts rose from 3.0% to 7.3% (consensus of 5.5%) but annualized housing starts eased from 0.944M to 0.904M. Construction orders fell from 16.3% to -3.4%.

“The EUR/JPY held steady yesterday and has yet to register a close below the February peak at 127.71. it is downside corrective near term and we would allow for further losses and a slide back to the 125.00, the low from mid April”, wrote Commerzbank analyst Karen Jones.

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