Forex traders will finish this week, filled with economic data pointing towards a slowing Eurozone economy, with more disappointment expected out of Germany. Industrial production is anticipated to post another annualized contraction and pressure the Euro. The French trade balance and Italian retail sales will be released later in the session. How will this data impact price action in the EURJPY, currently hovering at resistance? Today’s fundamental analysis will take a look at price action in both directions.

Japanese labor cash earnings rose more than economists expected, but household spending plunged. This wiped out the previous month’s strong increase and confirms the fragile state of the Japanese economy. The EURJPY remained at resistance, but how will this currency pair react to economic data released later in the session? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.