EUR/JPY Price Analysis: Retreats to 149.50 even as German data disappoints, BoJ’s Ueda defends QQE

EUR/JPY bears cheer downbeat German data to portray the second consecutive daily loss near 149.50 heading into Tuesday’s European session. In doing so, the cross-currency pair also ignores dovish comments from Bank of Japan (BoJ) Governor Kazuo Ueda.

That said, Germany’s Factory Orders slumped to -9.9% YoY in April versus -8.9% expected and -11.2% (revised). On the other hand, BoJ’s Ueda signaled that the Japanese central bank will continue QQE until the achievement of the inflation target.

Technically, the cross-currency pair remains on the buyer’s radar due to the previous weeks’ rebound from the convergence of the 200-SMA and the bottom line of a one-month-old symmetrical triangle.

However, the steady RSI (14) line suggests a continuation of the lower grind and hence keeps the sellers hopeful.

With this, the EUR/JPY bears approach the aforementioned triangle’s bottom line, close to 149.15 by the press time, ahead of poking the 200-SMA support level surrounding 148.85.

It’s worth noting that the previous weekly low of around 148.60 also challenges the EUR/JPY sellers before giving them control.

Alternatively, a one-week-old descending resistance line, close to the 150.00 psychological magnet, caps the short-term upside of the pair.

Following that, the stated triangle’s top line near 151.00 will be crucial for the EUR/JPY bulls to cross to regain power.

EUR/JPY: Four-hour chart

Trend: Further recovery expected