FxWirePro: EUR/JPY extends gains, final GDP data confirms eurozone avoids technical recession

Chart - Courtesy Trading View 

EUR/JPY was trading 0.23% higher on the day at 142.25 at around 11:30 GMT, after closing 1.15% higher in the previous session.

According to data released by Eurostat, the statistical office of the European Union, Euro zone gross domestic product growth slowed in the last three months of 2022 but did stayed in positive territory, thereby avoided a technical recession.

Eurozone Q4 GDP expansion was confirmed at a 0.1% quarter-on-quarter and a 1.9% year-on-year rise, in line with the preliminary estimate on Jan 31st.

Further, the employment rose more than expected, underlining the resilience of the labour market. The number of people with jobs in the euro zone increased by 0.4% quarter-on-quarter. Year-on-year, employment growth was 1.5% in the last three months of 2022, Eurostat said.

On Monday, the European Commission (EC) revised up the economic growth forecast for the Eurozone to 0.9% for 2023 from 0.3% previously expected, 2024 growth kept unchanged at 1.5%.

The EC, however, lowered the Eurozone inflation forecast for 2023 to 5.6% YoY from 6.1% earlier expected. It also cut 2024 inflation predictions to 2.5% for 2024, versus 2.6% previously anticipated.

Support levels - 141.62 (110-EMA), 141.19 (21-EMA)

Resistance levels - 142.57 (Cloud top), 142.88 (Upper BB)

Summary: EUR/JPY has been extending choppy trade around 200-DMA. Decisive break above cloud will fuel further gains in the pair.