EUR/JPY Forecast – Euro Remains In Uptrend Vs Japanese Yen
- The Euro after trading towards 128.00 against the Japanese Yen started an uptrend and moved above 130.00.
- There is an ascending channel pattern forming with support at 129.80 on the hourly chart of EUR/JPY.
- Today in the Euro Zone, the preliminary Gross Domestic Product figure for Q2 2017 was released by the Eurostat.
- The outcome was above the forecast of +2.1%, as there was a rise of 2.2% in the GDP (YoY).
Euro Zone Gross Domestic Product
Today in the Euro Zone, the preliminary Gross Domestic Product figure for Q2 2017 was released by the Eurostat. The market was positioned for a rise of 2.1% in the GDP compared with the same quarter a year ago.
However, the actual result was above the forecast of +2.1%, as there was a rise of 2.2% in the GDP. In terms of the quarterly change, the GDP came in at +0.6%, just as the market expected and similar to the last reading. The report added that:
Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.2% in the euro area and by 2.3% in the EU28 in the second quarter of 2017, after +1.9% and +2.1% respectively in the previous quarter.
Overall, the EUR/JPY pair remains in an uptrend and likely to move higher towards the 130.40-50 levels in the near term.
EUR/JPY Technical Analysis
The Euro was under a lot of pressure this past against the Japanese Yen and traded below 130.00. The EUR/JPY pair broke the 129.00 and 129.50 support levels to trade as low as 128.04 where it found buyers.
The recovered sharply and moved above the 129.50 resistance area and the 100 hourly simple moving average. At the moment, the pair is following an ascending channel pattern with support at 129.80 on the hourly chart.
There was a minor dip recently towards 129.60, but the pair quickly recovered above the 38.2% Fib retracement level of the last decline from the 130.39 high to 129.58 low.
The pair may soon break 130.20 for further gains in the near term. On the downside, dips towards the 129.80-130.05 levels remain supported. One may even consider buying dips with a stop below 129.75.
