FxWirePro: EUR/JPY breaks 2 days of downside, holds gains above 129

EUR/JPY chart - Trading View 

EUR/JPY paused 2 days of weakness and was trading 0.36% higher on the day at 129.41 at around 11:10 GMT.

Data published by Eurostat showed on Tuesday that the Gross Domestic Product (GDP) in the euro area contracted by 4.9% on a yearly basis in the fourth quarter.

Euro area Q4 GDP reading came in slightly better than the flash estimate and the market expectation of -5%. On a quarterly basis, the GDP declined by 0.7%.

Other data from the euro area revealed that the Employment Change in the fourth quarter was +0.3% inline with estimates.

Major trend in the pair is bullish and price action is extending gains above 61.8% Fib, outlook is bullish.

Bulls are on track to test 200-month MA resistance at 130.31. Momentum is bullish, volatility is high and rising. Break above 200-month MA will open upside.

Focus on ECB interest rate decision/Press Conference/Economic Projections due Thursday along with EMU’s Industrial Production due Friday for impetus.

EUR appreciation could trigger ECB verbal intervention, which may dent further upside in the pair.