EUR/JPY hits 2-day low after IFO data

FXStreet (Córdoba) - The EUR/JPY fell to fresh daily lows at the beginning of the European session following the release of lower-than-expected German IFO data.

The shared currency came under pressure and printed a 2-day low of 138.59 after data signaled German optimism might be waning. From the German Ifo survey, business climate index fell to 110.4 in May versus 110.9 expected. Current conditions index dropped to 114.8 against 115.5 while expectations index was 106.2 versus 106.6 consensus.

EUR/JPY technical levels

However, the EUR/JPY is holding pretty well, compared to the EUR/USD, currently trading at the 138.65 area, 0.09% below its opening price. In terms of technical levels, if the pair breaks below 138.59 (May 23 low), next supports are seen at 138.38 (May 21 low) and 138.00 (psychological level/200-day SMA).

On the other hand, resistances could be found at 139.00/02 (psychological level/May 23 high), 139.29 (10-day SMA) and 139.85 (May 15 high).

Germany: IFO – Business Climate down to 110.4 in May, below expectations

According to data published on Friday by the CESifo Group, German IFO – Business Climate decreased from 111.2 in April to 110.4 in May. Market consensus pointed to a 110.9 result.
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