German Ifo index drops in December, suggesting that German businesses surprisingly do seem to care about politics. Meanwhile, get updated on the 19 December USDJPY Technical Analysis.
19 December, GKFX –The EUR/JPY cross held on to its daily gains and refreshed session tops post-German IFO business survey results.
• Mixed German IFO business survey results fail to provide any fresh bullish impetus.
• Reviving safe-haven demand now seemed to cap additional gains.
The cross gained some positive traction and spiked to the 113.00 handle after the German IFO current economic assessment index bettered estimates, arriving at 125.4 points for December as compared 124.7 expected and last month’s reading of 124.5.
Meanwhile, the headline IFO business climate index witnessed slight deterioration and slipped to 117.2 from 117.6 previous (revised higher from 117.5) and worse than 117.5 expected. The IFO Expectations Index, which indicates firms’ projections for next six months also missed expectations and arrived at 109.5 for the reported period.
Today’s mixed results did little to provide any fresh bullish impetus, albeit fresh coalition talks between Social Democrats and Chancellor Angela Merkel, to end the country’s political deadlock, continued to underpin the shared currency and remained supportive of the pair’s strong bid tone for the second straight session.
Meanwhile, a mildly cautious investor sentiment extended some support to the Japanese Yen’s safe-haven demand and now seems to be collaborating towards capping any additional gains for the cross.
19 December USDJPY Technical Analysis
A follow-through buying interest beyond the 133.00 handle has the potential to continue lifting the cross towards the 133.55-60 supply zone en-route the 134.00 round figure mark.
On the flip side, the 132.50-45 region now seems to act as immediate support, which if broken could turn the cross vulnerable to test sub-132.00 level (100-day SMA support).
This article “19 December USDJPY Technical Analysis ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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