- EUR/JPY consolidates around 138 as the Japanese yen remains little changed versus the euro following the release of downbeat Japan’s Q2 GDP data.
- The single currency fails to gather further momentum versus the yen despite dismal Japan’s growth figures.
- Daily Stochastics show a bearish crossover at overbought levels, and RSI is also biased lower.
- EUR/JPY is currently trading at 138.14, with the next hurdle located at 138.25 (Aug 16 High), above which it could extend gains to 138.40 (Aug 11 High).
- To the downside immediate support might be seen at 137.89 (Aug 14 Low) below that at 137.81 (4h Kijun-Sen).
- Markets now shift their attention towards Euro zone trade balance data in the absence of major economic events due for release in today’s trading calendar.
Recommendation: Good to sell rallies around 138.20, SL: 138.45, TP: 137.80
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