EUR/JPY corrects downward, poised for a consecutive weekly gain

• The EUR/JPY traded in the red below the 159.00 area after five consecutive days of gains.
• The cross closed Friday with 1.65% weekly gains, trading in highs since 2008. 
• Focus shifts to the Eurozone and Japan's GDP for Q2, which will be released the following week.

In Friday's session, the EUR/JPY traded with losses, closed negative below the 159.00 area, and corrected after five consecutive days of gains. On the Euro’s side, France's Consumer Price Index (CPI) figures slightly surprised to the upside but failed to significantly impact the pair, while no relevant reports featured on the Japanese economic calendar. All eyes are now on the Gross Domestic Product (GDP) for Q2, which will be released next week, for both the Eurozone and Japan region will help investors to place their bets on the European Central Bank (ECB) and Bank of Japan (BoJ) following decisions.

EUR/JPY Levels to watch

The daily chart analysis indicates a bullish outlook for the EUR/JPY in the short term despite Friday’s losses. The Relative Strength Index (RSI) is above its midline in positive territory aligning with the positive signal from the Moving Average Convergence Divergence (MACD), which displays green bars, reinforcing the strong bullish sentiment. Additionally, the pair is comfortably above the 20,100,200-day Simple Moving Averages (SMAs), indicating that the bulls are clearly in command on the broader picture.

Support levels: 157.60, 157.00, 156.00.

Resistance levels: 159.00, 159.50, 160.00.

EUR/JPY Daily chart