EUR/JPY retreats for second day as Yen strengthens, Euro weighed by softer growth revision

• EUR/JPY slides toward 163.00, testing key fortify from the ascending trendline and the 200-day EMA.
• The Euro stays below stress after Q1 GDP used to be revised decrease no topic upbeat industrial output.
• Valid-haven flows improve the Yen amid cautious threat sentiment.

EUR/JPY prolonged its pullback for a 2d consecutive session on Thursday, falling 0.5% to alternate around 163.00, with the Japanese Yen (JPY) gaining traction on safe-haven flows. The Euro (EUR) also got here below stress after Eurozone progress records showed signs of moderation, prompting merchants to reassess the build’s near-time interval outlook.

The most smartly-liked financial records showed the Eurozone economy grew by 0.3% in Q1, honest below the preliminary estimate of 0.4%, though it aloof marked the sixth straight quarter of growth. Annual progress held valid at 1.2%, whereas Industrial Manufacturing taken aback to the upside with a 2.6% MoM soar in March. Despite the industrial beat, the softer Sinister Domestic Product (GDP) print keeps stress on the European Central Bank (ECB) to preserve a dovish stance, particularly as inflation continues to ease.

The Japanese Yen draws fortify from broader macroeconomic and geopolitical components. Power world alternate uncertainties forced the US Buck (USD), lifting other major currencies, including the Yen. A broader rally in Asian currencies used to be also underway, pushed by speculation that the US administration is favoring a weaker Buck to rebalance alternate flows. Washington has time and all all over again argued that undervalued Asian currencies provide an unfair advantage to regional exporters. In the intervening time, consideration is turning to the US-Japan alternate negotiations, with Tokyo aiming to salvage a deal by June.

From a technical viewpoint, EUR/JPY is at this time testing an ascending trendline from the March lows, converging with the 200-day Exponential Transferring Common (EMA) at 161.86. This zone stays a key express of fortify. The broader construction stays intact as long as this stage holds, with buyers inclined to step in on dips. A sustained destroy below the trendline-EMA confluence would signal likely for extra plan back toward 160.50.

The Relative Strength Index (RSI) has eased to 50.9, hovering in just territory and suggesting a end in bullish momentum fairly than a pudgy trend reversal. On the upside, 164.50 continues to cap gains, and a breakout above this stage is required to resume the bullish bias.EUR/JPY stays at a predominant juncture, with the 162.00–161.85 zone performing as a key technical pivot. A soar might maybe maybe well situation off contemporary bullish momentum, but a destroy decrease would shift the near-time interval bias in want of the Yen.

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