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Forex: EUR/JPY jumps to 130.00 area on German data

FXstreet.com (Barcelona) - The EUR/JPY jumped on the release of German factory orders as the indicator didn’t follow the course of market consensus and grew by 2.2% in March, instead of contracting -0.5% as expected. February data was revised slightly lower from 2.3% to 2.2%. The EUR/JPY is back at its highs, trying to tackle the 130.00 handle and return to May and April highs at 130.41 and 131.13, respectively.

German factory orders in year-on-year basis dropped further, from -0.2% (revised from 0.0%) to -0.4%, but that came in better than the -2.9% expected. Earlier, the French industrial output not only contracted as predicted, but fell by -0.9% instead of the market consensus of -0.3%. The French trade deficit narrowed from €-6.011B to €-4.696B, beating €-5.600B consensus, as exports grew from €35.703B to €36.204B while imports dropped from €41.348B to €40.9B.

European Commissioner Olli Rehn said that tackling funding problems in Europe is the next challenge and IMF’s Lagarde said that central bankers must find out why banks are not lending.

“The EUR/JPY continues to push into the recent triangle resistance line at 130.36 and nears the 130.73 April 22 high, a rise above which will have the 131.12 April peak in its sights”, wrote Commerzbank analyst Axel Rudolph. “Our slightly longer term target is 136.71, the upside measurement from a wedge”, he added.

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