EUR/JPY - 23.6% of the 2-year slide has been retracted

Relentless selling in the Japanese Yen post US Elections pushed the EUR/JPY cross to 118.78 (23.6% of Dec 2015 high - June 2016 low). 

Eyes German GDP

The immediate focus is on the German GDP, which is expected to show the Eurozone’s largest economy expanded 0.2% q/q in the third quarter. Later in the day, German IFO sentiment indices could influence the overall demand for the Euros. 

Meanwhile, the stock market activity could influence the demand for the Japanese Yen. 

EUR/JPY Technical Levels

The pair was last seen trading around 118.80. A daily close above 118.78 (23.6% of Dec 2015 high - June 2016 low) would open doors for 119.44 (June 16 high). Further gains could run into resistance at 120.00 (zero figure). On the other hand, a breakdown of support at 118.40 (July 15 high) would shift risk in favor of a pull back to 118.00 (zero figure) and possibly due to 117.71 (previous day’s low).