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.
