FxWirePro: EUR/JPY holds marginal gains ahead of German GDP data, outlook bullish

EUR/JPY chart - Trading View 

EUR/JPY was extending marginal gains on the day, was trading 0.10% higher at 126.39 at around 05:45 GMT.

Germany's preliminary Q4 GDP is scheduled for release at 07:00 GMT and is expected to contract 3.4% y/y, following a 3.6% contraction in Q3. 

Data released earlier this month showed German manufacturing PMI rose to 58.3 in December from 57.8 the previous month.

Manufacturing PMI accounts for about a fifth of the German economy, and strong data keeps scope for upbeat GDP print.

A big beat on expectations may put a bid under the single currency, pushing the pair higher. 

Technicals also support upside in the pair. GMMA indicator shows major and minor trend are bullish.

Stochs and RSI show strong bullish momentum. MACD is on verge of bullish crossover on signal line. Pullbacks have held support at daily cloud.

The pair is consolidating trendline breakout. Scope for gains till 61.8% Fib at 128.67. Weakness only below daily cloud.