FxWirePro: EUR/JPY extends bounce off 21-EMA, ignores downbeat German GDP data

Chart - Courtesy Trading View 

EUR/JPY was trading 0.41% higher on the day at 141.66 at around 10:00 GMT. The pair is holding gains as price action has bounced off 21-EMA support. 

Common currency has largely ignored downbeat German GDP data released earlier on Monday, remains buoyed after the data from Spain showed that inflation unexpectedly accelerated in January.

Preliminary data published by Germany's Destatis showed German economy contracted by 0.2% on a quarterly basis in Q4. 

On an annualized rate, the Gross Domestic Product grew 1.1%, down from 1.3% recorded in the third quarter, and missed the market expectation of 1.3%.

Focus remains on the ECB which is predicted to raise its policy rate by half percentage point on Thursday.

Major Support Levels: 

S1: 140.83 (200H MA)

S2: 140.50 (20-DMA)

Major Resistance Levels: 

R1: 141.78 (55-EMA)

R2: 142.60 (20-week MA)

Summary: EUR/JPY trades with a bullish technical bias. Price action is testing resistance at 55-EMA, watch out for decisive break above for further upside.