With quarterly GDP readings scheduled to be released from both the euro area and Japan this week, currency market focus has shifted in part towards EUR/JPY – one of the most widely traded of the major non-USD crosses. On Tuesday morning, Eurostat will release its quarterly second-estimate, or flash, GDP reading for the euro area during the first quarter of this year. Markets are expecting +0.4% GDP growth during that time. German preliminary GDP will also be released on Tuesday morning, with expectations also running at +0.4% Q1 GDP growth. For its part, Japan’s Cabinet Office is slated to release Q1 preliminary GDP on Wednesday morning in Tokyo. Market consensus is currently expecting a flat initial reading (0.0%) for Japan’s GDP growth during the first quarter.
Ahead of these key GDP releases (along with consumer inflation data scheduled for release this week by both the eurozone and Japan), EUR/JPY has lately been on the rise as the recently battered euro has gained some respite from a retreating US dollar. Also, the Japanese yen has been pressured amid a lack of safe-haven demand, as risk appetite in the markets has increased significantly during the past week.
From a technical perspective, EUR/JPY has exhibited signs of trading within a new bearish trend during the past few months, following on the heels of the longstanding bullish trend since mid-2016. The currency pair fell below its 200-day moving average in late-February, struggled to revert back above the average, then fell decisively below again in late-April. Currently, despite the recent short-term rally, EUR/JPY remains below both its 50-day and 200-day moving averages, and continues to carry a bearish technical bias. Amid the noted GDP and CPI readings this week, as long as EUR/JPY maintains its downside momentum below both moving averages, the bearish bias should remain, potentially pressuring the currency pair towards key support around 128.00
Investopedia does not provide individual or customized legal, tax, or investment services. Since each individual’s situation is unique, a qualified professional should be consulted before making financial decisions. Investopedia makes no guarantees as to the accuracy, thoroughness or quality of the information, which is provided on an “AS-IS” and “AS AVAILABLE” basis at User’s sole risk. The information and investment strategies provided by Investopedia are neither comprehensive nor appropriate for every individual. Some of the information is relevant only in Canada or the U.S., and may not be relevant to or compliant with the laws, regulations or other legal requirements of other countries. It is your responsibility to determine whether, how and to what extent your intended use of the information and services will be technically and legally possible in the areas of the world where you intend to use them. You are advised to verify any information before using it for any personal, financial or business purpose. In addition, the opinions and views expressed in any article on Investopedia are solely those of the author(s) of the article and do not reflect the opinions of Investopedia or its management. The website content and services may be modified at any time by us, without advance notice or reason, and Investopedia shall have no obligation to notify you of any corrections or changes to any website content. All content provided by Investopedia, including articles, charts, data, artwork, logos, graphics, photographs, animation, videos, website design and architecture, audio clips and environments (collectively the "Content"), is the property of Investopedia and is protected by national and international copyright laws. Apart from the licensed rights, website users may not reproduce, publish, translate, merge, sell, distribute, modify or create a derivative work of, the Content, or incorporate the Content in any database or other website, in whole or in part. Copyright © 2010 Investopedia US, a division of ValueClick, Inc. All Rights Reserved
Recommended Content
Editors’ Picks
EUR/USD climbs above 1.1650 area on improving risk mood
EUR/USD extends its daily rally and trades above 1.1650 in the American session on Friday. The sharp decline seen in the 1-year Consumer Inflation Expectations component of the UoM Consumer Sentiment Index weighs on the US Dollar and helps the pair push higher.
GBP/USD rises above 1.3450 on USD weakness
GBP/USD gathers bullish momentum and trades above 1.3450 on Friday after struggling to find direction on Thursday. The positive shift seen in market mood and the pullback seen in US consumer inflation expectations hurt the US Dollar and support the pair heading into the weekend.
Gold extends daily recovery beyond $3,350
Gold gains traction on Friday and clings to daily gains above $3,350. Renewed US Dollar (USD) weakness and retreating US Treasury bond yields allow XAU/USD to edge higher, while the upbeat market mood limits the pair's upside.
Bitcoin nears all-time high, Ethereum eyes $4,000, Ripple sets new record
Bitcoin price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next. Ripple has taken center stage, reaching a new record high of $3.66 on Friday, signaling renewed demand and optimism across the market.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.