FxWirePro: EUR/JPY holds marginal gains, focus on German Q4 GDP data for impetus

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.15% higher on the day at 128.72 at around 06:50 GMT

Previous Week's High/ Low: 131.17/ 128.55

Previous Session's High/ Low: 129.01/ 128.32

Fundamental Overview:

On Thursday, the German GfK Consumer Confidence Survey showed improvement in the final figure of -6.7, versus -7.8 expected and -6.9 prior.

Cautious mood prevails ahead of preliminary readings of German Q4 GDP, expected -0.3% versus +1.7% prior.

Also, fears of Russia-Ukraine tension underpin the safe-haven Japanese yen, keeping upside in the pair limited.

Technical Analysis:

- EUR/JPY price action is moving away from lower Bollinger band

- Oscillators are at oversold levels raising scope for some pullback

- Price action is extending sideways at cloud base support

- 5-DMA caps recovery attempts, break above could see more upside

- The pair is grinding sideways along 200-month MA, decisive break above will provide clear long-term upside

Major Support and Resistance Levels:

Support - 128.10 (Rising Trendline), Resistance - 129.18 (200H MA)

Summary: EUR/JPY is showing signs of some upside. Major trend however remains bearish. Watch out for break above 5-DMA for some more gains. Bearish invalidation only above 200-DMA. Major trend is likely to remain sideways for some time.