FxWirePro: EUR/JPY marginally bid, holds 20-DMA support at 124.85, focus on EU Q4 GDP data for clear directional bias

EUR/JPY chart on Trading View used for analysis

• EUR/JPY marginally bid on the day, up 0.20% at 125.24 at 0415 GMT.
   
• Data on Wednesday showed Industrial Production fell in the Union in December by more-than-anticipated, down by 0.9% MoM and by 4.2% YoY.
   
• Japanese data released earlier today showed preliminary Q4 GDP rose to 0.3 % q/q, missing forecast at 0.4 % vs previous -0.6 %.
   
• The pair is holding support at 20-DMA at 124.85 and we see weakness on break below.
   
• Technical indicators on the daily charts have turned bullish. RSI has edged above 50 and is biased higher.
   
• Stochs and MACD show bullish momentum. The pair is on track to test 55-EMA at 125.81.
   
• Focus now on Germany and EU preliminary Q4 GDP data for further impetus. Major trend is bearish. Break above 55-EMA will see upside till 110-EMA at 127.
   
• The Union's slowing growth has been one of the reasons for the latest EUR weakness, and poor data could exacerbate its decline.

Support levels - 124.85 (20-DMA), 124.48 (cloud top), 124.17 (Feb 8 low)

Resistance levels - 125.81 (55-EMA), 126, 127 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.