EUR/JPY Outlook (03 May 2021)

#OPINIONLEADER#

ByJin Dao Tai

 MAY 3, 2021

Overall, EUR/JPY is trending upwards.

The German Preliminary GDP q/q data (Actual: -1.7%, Forecast: -1.5%, Previous: 0.3% revised from 0.1%) released last Friday indicated negative economic growth during the first quarter of 2021.

Also, the eurozone CPI data released indicated an overall increase in annual inflation. Preliminary GDP data shows that the eurozone economy is still in contraction while the unemployment rate data indicated a slight decline in unemployment.

• CPI Flash Estimate y/y (Actual: 1.6%, Forecast: 1.6%, Previous 1.3%)
• Core CPI Flash Estimate y/y (Actual: 0.8%, Forecast: 0.8%, Previous 0.9%)
• Preliminary Flash GDP q/q (Actual: -0.6%, Forecast: -0.8%, Previous: -0.7%)
• Unemployment Rate (Actual: 8.1%, Forecast: 8.3%, Previous: 8.2% revised from 8.3%)

Japanese banks will be closed today in observance of Constitution Day. Expect lower trading volatility and volume during the usual Japanese market hours.

Also, Japanese banks will be closed tomorrow in observance of Greenery Day.

EUR/JPY’s next support zone is at 130.800 and the next resistance zone is at 132.800.

Look for short-term selling opportunities of EUR/JPY.