EUR/JPY clings to gains near 123 post-German data

The EUR/JPY cross clings onto gains, although retreats from daily tops, as the bulls got hit by worse-than expected German datasets.

EUR/JPY firmer on USD/JPY pullback

The EUR/JPY pair now gains +0.46% to trade at 122.88, unable to surpass 123 handle. EUR/JPY remains strongly bid, largely on the back of a solid rebound staged by the USD/JPY pair from multi-week troughs, in wake of profit-taking before the US employment data.

However, the bulls struggle to extend the upside as the latest German factory orders and retail sales data came in below estimates and dampened the sentiment around the euro. Looking ahead, focus now shifts towards the Eurozone retail sales data and the highly influential US payrolls numbers for fresh impetus on both the Yen and EUR.

EUR/JPY: Technical Levels

Higher side: 123.50 (psychological levels), 123.89 (Dec 30 high)

Lower side: 122.25 (daily low), 121.79 (Classic S1)