#EURJPY @ 149.830 rises after GDP in Q1 for Japan surprisingly contracted by 0.3%. (Pivot Orderbook analysis)

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• EUR/JPY rises after GDP in Q1 for Japan surprisingly contracted by 0.3%.
• Current Account showed a surplus and Trade Balance deficit in April.
• Eyes on Eurozone GDP data on Thursday.

The pair currently trades last at 149.830.

The previous day high was 150.02 while the previous day low was 148.63. The daily 38.2% Fib levels comes at 149.49, expected to provide support. Similarly, the daily 61.8% fib level is at 149.16, expected to provide support.

At the beginning of Thursday’s Asian session the EUR/JPY rose after Japan reported strong Current Account data but a Trade Balance deficit. In addition, the Q1 Gross Domestic Product (GDP) unexpectedly contracted. As a reaction, the EUR/JPY increased slightly to the 149.88 area. For the rest of the session, GDP data from the Eurozone (EZ) may have a further impact on the pair.

The Cabinet Office from Japan reported that the Gross Domestic Product (GDP) contracted by 0.3% (QoQ) in Q1 while the markets expected a 0.5% expansion from the previous 0.4% quarterly reading. However, the annualized rate showed an expansion of 2.7% from its previous 1.6%. In addition, the Ministry of Finance reported a ¥1,895B Current Account surplus but a ¥113.1B Trade Balance deficit, which came better than the consensus.

On Thursday, the EZ will report GDP data from Q1, which is expected to have stagnated in the quarterly reading and a slight deceleration in the annualized rate from 1.3% to 1.2%.

According to the daily chart, the EUR/JPY exchange rate holds a neutral to bullish outlook for the short term as the market enters a period of consolidation. However, technical indicators remain positive, indicating that the market may be preparing for another leg up.

If EUR/JPY manages to move higher, the next resistances to watch are at the 149.80 zone, followed by the 150.00 area and the 150.50 level. On the other hand, The 20-day Simple Moving Average (SMA) at the 149.40 level is key for EUR/JPY to maintain its upside bias. If it is breached, a more pronounced decline towards the 148.50 area and 148.00 zone could come into play.

Technical Levels: Supports and Resistances

EURJPY currently trading at 149.8 at the time of writing. Pair opened at 149.91 and is trading with a change of -0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 149.27, 50 SMA 147.84, 100 SMA @ 145.16 and 200 SMA @ 144.14.

The previous day high was 150.02 while the previous day low was 148.63. The daily 38.2% Fib levels comes at 149.49, expected to provide support. Similarly, the daily 61.8% fib level is at 149.16, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 149.02, 148.14, 147.64
• Pivot resistance is noted at 150.41, 150.91, 151.8

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