EURJPY continues south for fifth consecutive session hitting fresh monthly lows after weaker data out of China that points to pressure on Chinese economy and risks for the global growth. Chinese Industrial Production (year over year) came in at 4.7%, below forecasts of 5.4% in October. China Retail Sales (year over year) came in at 7.2%, also below forecasts of 7.9% for the same month. Conflicting reports on trade talks and the disappointing Chinese data send investors to safe-haven assets.
Yen ignored downbeat data as the Japan Preliminary Q3 GDP came in at 0.1% QoQ below expectations of 0.2%. The Japan GDP Annualized came in at 0.2% also below expectations of 0.8% in 3Q. On the other hand the Japan Tertiary Industry Index (month over month) came in at 1.8% topping forecasts of -0.6% in September.
Mixed macro data from Eurozone didn’t help the EURO; Eurozone Q3 GDP came in 0.2% as expected, while the yearly reading came in at 1.2%, topping forecasts of 1.1%. The Employment Change (QoQ) came in at 0.1%, below forecasts of 0.2% in 3Q while the Employment Change yearly reading came in at 1% in line with forecasts.
EURJPY made fresh monthly lows today as the pair giving up 0.32% at 119.38 around the 50-day moving average. On the technical analysis side the short term momentum is bearish now as the pair trades below the 100-day moving average while as of writing is breaking also below the 50-day moving average.
On the downside, immediate support stands at 119.351 daily lows, a break below that level might attract more sellers to join the action that may push the price down to 118.69 the low from October 11th.
On the upside, first resistance stands at 119.80 today’s high, a break above can lead prices up to 1203.63 the high from November 12th, before an attempt to 121.46 the monthly high.More content