EUR/JPY Outlook (02 July 2021)

#OPINIONLEADER#

ByJin Dao Tai

 AUG 2, 2021

Overall, EUR/JPY is trending downwards.

The eurozone inflation data released last Friday indicated headline annual inflation in July continue to rise at a higher rate while core inflation declined slightly. The preliminary flash GDP q/q data released indicated a strong rebound in eurozone economic growth, surpassing the market’s expectation. Jobless rate also declined. Overall, the eurozone economy is making good progress in its recovery.

• CPI Flash Estimate y/y (Actual: 2.2%, Forecast: 2.0%, Previous: 1.9%)
• Core CPI Flash Estimate y/y (Actual: 0.7%, Forecast: 0.7%, Previous: 0.9%)
• Preliminary Flash GDP q/q (Actual: 2.0%, Forecast: 1.5%, Previous: -0.3% revised from -0.6%)
• Unemployment Rate (Actual: 7.7%, Forecast: 7.9%, Previous: 7.9%)

Currently, EUR/JPY is testing the support zone of 130.000 and the next resistance zone is at 132.000.

Look for short-term buying opportunities of EUR/JPY if it rejects the support zone of 130.000.