- EUR/JPY fades recent gains and recedes to the mid-121.00s.
- Final EMU Q1 GDP came in at 0.4 QoQ and 1.2% YoY.
- ECB event next of relevant in the calendar.
The Japanese currency has gathered some traction in the second half of the week and is now dragging EUR/JPY to the mid-121.00s ahead key events in the Old Continent.
EUR/JPY focused on the ECB
The cross is now losing some ground following three consecutive daily advances, finding moderate resistance in weekly tops around 122.30 so far.
The demand for the safe haven JPY has picked up some pace today following renewed effervescence in the US-China trade front.
In the data space, final Q1 GDP figures showed the economy in Euroland expanded in line with preliminary readings: 0.4% inter-quarter and 1.2% over the last twelve months, so no surprises over there.
Later in the session, the broad consensus anticipates the ECB leaving its monetary conditions unchanged at today’s event, while expectations of a dovish tone at Draghi’s press conference remain firm.
EUR/JPY relevant levels
At the moment the cross is retreating 0.11% at 121.56 and a breach of 120.78 (low Jun.3) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’). On the upside, the next resistance of note emerges at 122.26 (high Jun.5) followed by 123.75 (high May 21) and finally 124.00 (55-day SMA).
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