Japan’s Q2 GDP growth slowed to 0.3%, missing forecasts, pressuring the JPY and lifting EUR/JPY toward key resistance.
The EUR/JPY pair climbed to 184.54, extending a three-day rally as weak Japanese GDP data weighed on the yen. The cross breached the 50% retracement of its late-July sell-off, with 185.00 resistance in sight.
Japan’s economy grew 0.3% in Q2, below the 0.5% consensus, while year-on-year growth decelerated to 1.1% from 1.8%. Analysts noted flat private consumption and a drag from non-residential investment, raising fiscal concerns.
Technical indicators show neutral-to-positive momentum, with the RSI at 52 and MACD reflecting upside traction. The pair holds above an ascending trendline from late July lows.