17 Aug 2015
EUR/JPY consolidates around 138 on Japan’s GDP
FXStreet (Mumbai) - The cross in the EUR/JPY tries hard to extend beyond 138 handle as the European currency fails to gather further momentum versus the yen despite dismal Japan’s growth figures.
EUR/JPY extends weakness
Currently, the EUR/JPY pair trades -0.08% lower at 138.03, bouncing-off a brief dip to lows at 137.98. The EUR/JPY extends its downside bias from Friday last US session as the Japanese yen remains little changed versus the euro following the release of downbeat Japan’s Q2 GDP data.
GDP growth fell 0.4% in the June quarter, the first estimate from Japan's Cabinet Office showed on Monday, coming in slightly stronger than the market forecast of a 0.5% contraction, but turning around sharply from the first-quarter expansion of 1.0%.
On the other hand, the shared currency remains pressured versus the US dollar as the latest series of stronger US data continues to boost the greenback, keeping EUR/USD undermined.
In the day ahead, markets now shift their attention towards Euro zone trade balance data in the absence of major economic events due for release in today’s trading calendar.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 138.25 (Aug 16 High) levels and above which it could extend gains 138.40 (Aug 11 High) levels. To the downside immediate support might be located at 137.89 (Aug 14 Low) below that at 137.50 levels.
EUR/JPY extends weakness
Currently, the EUR/JPY pair trades -0.08% lower at 138.03, bouncing-off a brief dip to lows at 137.98. The EUR/JPY extends its downside bias from Friday last US session as the Japanese yen remains little changed versus the euro following the release of downbeat Japan’s Q2 GDP data.
GDP growth fell 0.4% in the June quarter, the first estimate from Japan's Cabinet Office showed on Monday, coming in slightly stronger than the market forecast of a 0.5% contraction, but turning around sharply from the first-quarter expansion of 1.0%.
On the other hand, the shared currency remains pressured versus the US dollar as the latest series of stronger US data continues to boost the greenback, keeping EUR/USD undermined.
In the day ahead, markets now shift their attention towards Euro zone trade balance data in the absence of major economic events due for release in today’s trading calendar.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 138.25 (Aug 16 High) levels and above which it could extend gains 138.40 (Aug 11 High) levels. To the downside immediate support might be located at 137.89 (Aug 14 Low) below that at 137.50 levels.