FxWirePro: EUR/JPY spikes over 1%, euro ignores poor ZEW data, remains bid as bank crisis fears ebb on Credit Suisse rescue

Chart - Courtesy Trading View 

Spot Analysis: 

EUR/JPY was trading 1.17% higher on the day at 142.35 at around 10:45 GMT.

Previous Week's High/ Low: 144.96/ 139.11

Previous Session's High/ Low: 141.74/ 138.82

Fundamental Overview:

UBS' state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis.

The German ZEW headline Economic Sentiment Index worsened in March, arriving at 13.0 from 28.1 in January, missing the market expectation of 16.4.

German Current Situation Index printed at -46.5 from -45.1 in the prior month, worse than the market expectation of -45.8.

During the same period, the Eurozone ZEW Economic Sentiment Index fell to 10.0 from 29.7, compared to the estimates of 23.2. 

Technical Analysis:

- EUR/JPY has bounced off Triangle base support

- Price has retraced above 200-DMA and daily cloud top

- RSI has turned higher, but remains below 50 mark

- MACD and ADX still support downside in the pair

Major Support and Resistance Levels:

Support - 141.78 (200-DMA), Resistance - 142.59 (55-EMA)

Summary: EUR/JPY is testing 200H MA resistance at 142.44. Technical indicators are still biased bearish. Decisive break above 200H MA could change near-term dynamics.