FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

EUR/JPY was trading 0.07% lower on the day at 142.26 at around 11:10 GMT, up from session lows at 

Price action is consolidating cloud breakout and is poised for further gains, technical indicators support upside.

Data released earlier on Thursday showed Japan January trade deficit improved to ¥-3,496.6B versus ¥-3,871.5B expected and ¥-1,451.8B prior (revised). 

Exports grew 3.5% versus 0.8% expected and 11.5% previous readings while the Imports eased to 17.8% versus 18.4% market forecasts and 20.7% prior. 

Elsewhere, Japan’s Machinery Orders rose by 1.6% MoM versus 3.0% expected and -8.3% prior.

Upbeat Japanese trade data stoked fresh calls for hawkish moves from the Bank of Japan (BoJ).

On the other side, ECB Economic Bulletin published on Thursday showed survey data point to weakening global economic activity at the turn of the year.

The single currency shrugged off the release of the ECB’s Economic Bulletin, EUR/JPY erases early losses and edged higher.

The pair trades in a Symmetric Triangle pattern and cloud break out has raised scope for further upside. Scope for test of Triangle top at 144.70.

Support levels - 142.35 (5-DMA), 141.60 (21-EMA)

Resistance levels - 144, 144.70 (Triangle top)

Summary: EUR/JPY consolidates cloud breakout. Technical analysis support gains. Scope for test of 144.70 (Triangle top).