FxWirePro: EUR/JPY slips lower despite upbeat German GDP numbers, struggles to get past 129 handle

EUR/JPY chart - Trading View 

Spot Analysis:

EUR/JPY erased early gains and slipped lower from session highs at 129.03 to trade largely unchanged at 128.83 at around 08:20 GMT

Previous Week's High/ Low: 129.43/ 127.93

Previous Session's High/ Low: 129.14/ 128.28

Fundamental Overview:

Data released by the German Federal Statistics office earlier on Tuesday showed the German economy grew faster than expected in the second quarter.

German Q2 GDP rose at 1.6% on the quarter, climbing 9.4% on the year, a sharp rebound from the first quarter’s -1.8% decline.

Upbeat data failed to put a bid under the euro which remained depressed after Bundesbank's announcement on Monday that the country may miss full-year growth targets due to the delta variant.

Markets remain upbeat after the FDA fully approved Pfizer's covid vaccine and as expectations of Fed tapering wane, and may limit losses. 

Technical Analysis:

- EUR/JPY has bounced off 50-week MA and is trading shy of 200-DMA resistance

- 5-DMA has turned and is now offering support at 128.51

- Stochs are on verge of bullish rollover from oversold levels

- MACD is on verge of bullish crossover on signal line

Major Support and Resistance Levels:

Support - 128.51 (5-DMA), Resistance - 129.09 (200-DMA)

Summary: EUR/JPY trades with a bearish bias. Decisive break above 200-DMA could change near-term bias. Failure at 200-DMA will see downside resumption. Major support below 5-DMA lies at 50% Fib retracement at 127.87.