The Euro (EUR) inched lower against the Japanese Yen (JPY) on Thursday, decreasing the price of EUR/JPY to less than 119.50 following the Germany’s Gross Domestic Product (GDP) news release. The technical bias remains bullish because of a higher high in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 119.24. A support can be noted around 118.59 (the low of yesterday + trendline support area). A break and daily closing below the 118.50 support zone shall invalidate the yesterday’s bullish pin bar, opening door for another dip towards the 117.50 support area.
On the upside, an immediate hurdle can be seen around 119.70 (the 38.2% fib level + a short term horizontal resistance area) ahead of 121.33 (the high of February 10th) and then 123.02 (the trendline resistance area) as demonstrated in the given below daily chart. The technical bias shall however remain bullish as long as the 118.50 support is intact.
Germany’s GDP News
Germany’s economic growth accelerated as estimated in the fourth quarter, detailed results from Destatis showed Thursday. Gross domestic product grew 0.4 percent sequentially in the fourth quarter, faster than the 0.1 percent expansion seen in the third quarter. The calendar-adjusted GDP growth held steady at 1.7 percent in the fourth quarter. On an unadjusted basis, GDP climbed 1.2 percent after climbing 1.5 percent a quarter ago.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair on a daily closing below the trendline support area can be a good strategy.