FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.49% higher on the day at129.03 at around 10:25 GMT.

Previous Week's High/ Low: 129.24/ 128.24

Previous Session's High/ Low: 128.85/ 128.35

Fundamental Overview:

Data released earlier today showed Eurozone economy expanded by 0.3% on quarter in the three months to December of 2021, inline with expectations and 2.3% prior.

On an annualized basis, the bloc’s GDP rose by 4.6% in Q4 vs. 3.9% booked in the third quarter of 2021, missing 4.7% expectations. 

Focus now on German inflation data for January due at 1300 GMT on Monday. Analysts expect an overall annual CPI rate of 4.3%. The HICP is projected to come in at 4.7%.

The ECB meets next on Thursday but no policy move is expected as the bank unveiled a complex package of measures in December.

Technical Analysis:

- Price action has retraced above 200H MA

- GMMA indicator shows bullish shift on the intraday charts

- Price action has broken above 5-DMA and re-entered the daily cloud

- Oscillators are still biased lower, momentum is bearish

Major Support and Resistance Levels:

Support - 128.70 (5-DMA), Resistance - 129.45 (21-EMA)

Summary: EUR/JPY poised for some gains after sideways grind. Scope for test of 21-EMA at 129.45. Break above will see further upside.