EUR/JPY Rises Despite Weaker ZEW Data
The EUR/JPY pair is trading higher, shrugging off worse-than-expected ZEW data from the Eurozone (EU). The recovery is partly driven by the stronger US Dollar (USD) following positive US Retail Sales data.
US Retail Sales
The US Retail Sales data for August exceeded expectations, expanding by 0.1% MoM. This positive data contributed to the stronger USD and supported the EUR/JPY pair.
ZEW Survey
The ZEW Survey of Expectations for the Eurozone and Germany dipped to an eleven-month low in September, indicating ongoing economic uncertainty.
ECB and BoJ Monetary Policy
The European Central Bank (ECB) Member Gediminas Simkus has ruled out a rate cut in October. The Bank of Japan (BoJ) is expected to maintain its current monetary policy stance, although analysts suggest a potential rate hike by year's end.
Technical Analysis
The EUR/JPY pair has cleared the Tenkan-Sen at 157.46 and aims to challenge the Senkou Spa A at 158.49. If these levels are cleared, the next target would be the Kijun-Sen at 159.51. On the downside, the pair could retest the latest trough at 155.14.