FxWirePro: EUR/JPY trades below 130 handle, German IFO Business Climate Index unexpectedly drops in July

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.12% lower on the day at 129.91 at around 09:00 GMT.

The pair was off session highs after data released earlier on Monday showed German IFO Business Climate Index unexpectedly drops in July.

The headline German IFO Business Climate Index unexpectedly fell to 100.8 in July, missing  consensus estimates of 102.1 versus last month's 101.7.

The Current Economic Assessment printed at 100.4 points in as compared to last month's 99.7 and lower than 101.6 expected.

Further, the IFO Expectations Index dropped sharply to 101.2 in July from the previous month’s 103.7 reading and the market expectations of 103.3.

Technical indicators point to some upside in the pair, but downbeat German IFO survey weighed on the single currency across the board. 

5-DMA has turned north, Stochs are showing a rollover from oversold levels and MACD shows a bullish crossover on signal line.

The pair is extending choppy trade below 130 mark. Stiff resistance is seen till 130.47. Breakout above will fuel further upside.