EUR/JPY corrects downward, poised for a consecutive weekly gain

The EUR/JPY traded in the red below the 159.00 area after five consecutive days of gains.
The cross closed Friday with 1.65% weekly gains, trading in highs since 2008.
Focus shifts to the Eurozone and Japan's GDP for Q2, which will be released the following week.

Patricio Martín FXStreet

In Friday's session, the EUR/JPY traded with losses, closed negative below the 159.00 area, and corrected after five consecutive days of gains. On the Euro’s side, France's Consumer Price Index (CPI) figures slightly surprised to the upside but failed to significantly impact the pair, while no relevant reports featured on the Japanese economic calendar. All eyes are now on the Gross Domestic Product (GDP) for Q2, which will be released next week, for both the Eurozone and Japan region will help investors to place their bets on the European Central Bank (ECB) and Bank of Japan (BoJ) following decisions.

EUR/JPY Levels to watch

The daily chart analysis indicates a bullish outlook for the EUR/JPY in the short term despite Friday’s losses. The Relative Strength Index (RSI) is above its midline in positive territory aligning with the positive signal from the Moving Average Convergence Divergence (MACD), which displays green bars, reinforcing the strong bullish sentiment. Additionally, the pair is comfortably above the 20,100,200-day Simple Moving Averages (SMAs), indicating that the bulls are clearly in command on the broader picture.

Support levels: 157.60, 157.00, 156.00.

Resistance levels: 159.00, 159.50, 160.00.

EUR/JPY Daily chart

EUR/JPY

Overview
Today last price	158.72
Today Daily Change	-0.26
Today Daily Change %	-0.16
Today daily open	158.98

Trends
Daily SMA20	156.38
Daily SMA50	155.15
Daily SMA100	151.2
Daily SMA200	146.95

Levels
Previous Daily High	159.21
Previous Daily Low	157.66
Previous Weekly High	157.5
Previous Weekly Low	155.11
Previous Monthly High	158.05
Previous Monthly Low	151.41
Daily Fibonacci 38.2%	158.62
Daily Fibonacci 61.8%	158.25
Daily Pivot Point S1	158.02
Daily Pivot Point S2	157.06
Daily Pivot Point S3	156.47
Daily Pivot Point R1	159.57
Daily Pivot Point R2	160.17
Daily Pivot Point R3	161.13

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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