EUR/JPY Outlook (03 August 2020)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY broke the resistance zone of 124.200.

The eurozone CPI flash estimate y/y data released last Friday indicated an increase in euro area annual inflation due to the continued easing of COVID-19 containment measures. However, euro area is still suffering from negative economic growth during the second quarter of 2020.

• CPI Flash Estimate y/y (Actual: 0.4%, Forecast: 0.3%, Previous: 0.3%)
  
• Core CPI Flash Estimate y/y (Actual: 1.2%, Forecast: 0.8%, Previous: 0.8%)
  
• Preliminary Flash GDP q/q (Actual: -12.1%, Forecast: -12.0%, Previous: -3.6% revised from -3.8%)
  

The eurozone Final Manufacturing PMI data (Forecast: 51.1, Previous: 51.1) will be released later at 1600 (SGT).

The Japanese Preliminary GDP q/q data (Actual: -0.6%, Forecast: NA, Previous: -0.6% revised from -0.9%) released earlier today indicated negative economic growth in Japan during the second quarter of 2020.

Currently, EUR/JPY is moving towards the support zone of 124.200 and the next resistance zone is at 126.500.
Look for buying opportunities of EUR/JPY if it bounces off the support zone of 124.200.