FxWirePro: EUR/JPY spikes over 1.2%, more upside on cards

Chart - Courtesy Trading View 

EUR/JPY was trading 1.22% higher on the day at 143.13 at around 10:55 GMT.

The pair is extending spike for the second straight session, hits three-month high above 143 handle.

Upbeat Eurozone GDP and employment data support euro bulls ahead of the ECB policy meeting.

Eurozone economy expanded by 0.8% on the quarter in Q2 vs. 0.6% prior, beating market consensus was for a reading of 0.6%.

On an annualized basis, the bloc’s GDP rate rose by 4.1% in Q2 vs. 3.9% booked in the first estimate while matching 3.9% expectations.

Meanwhile, the bloc’s Q2 Employment Change printed at 0.4% QoQ and 2.7% YoY, also beating expectations across the time horizon.

Investors await interest rate decision by the European Central Bank (ECB). Consensus suggests ECB President Christine Lagarde will announce a rate hike by 50 basis points (bps).

Support levels - 140.59 (5-DMA), 138.79 (21-EMA)

Resistance levels - 143.43 (Upper W BB), 144

Summary: EUR/JPY trades with bullish technical bias. Momentum is bullish, volatility is high. Price action is above cloud and Chikou span is biased higher. Scope for further gains.