Euro (EUR) rose against the Japanese Yen (JPY) on Wednesday, increasing the price of the EURJPY to more than 126.00, ahead of the release of Japan’s Gross Domestic Product (GDP) news.
Technical Analysis
As of this writing, the EURJPY consolidates around 126.78, with a couple of resistance levels spotted ahead. The price might struggle to pass through the listed price tags.
Resistance
127.26 – the upper trendline arm
127.48 – the key horizontal resistance
128.00 – the psychological number
On the downside, the price of the pair might find some sustainability near the given support levels.
Support
126.17 – the trendline support
125.80 – the low of January 25, 2021
125.24 – the 38.2% Fib level support
Japan’s Gross Domestic Product (GDP) News
The Cabinet Office, Japan anticipates releasing stats for the Gross Domestic Product (GDP) news on Sunday (February 14, 2021). According to economists’ consensus, the GDP registered a reading of 2.3% in the fourth quarter of 2020, as compared to the reading of 5.3%, in the quarter before.
The stats for Gross Domestic Product reflect the value of all the products, including services, goods, and structures produced inside Japan over a given time. The GDP is a broad measure of market activity. It provides an idea about the pace at which the Japanese economy progresses or deteriorates. Generally speaking, numbers better than expected are seen positive for the Japanese Yen (JPY). However, they suggest a bearish market for the EURJPY pair and vice versa.
Conclusion
Given the macro-economic outlook of the pair, selling it around current levels might be a sensible trading decision in the short term.