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EUR/JPY firms as weaker Japan GDP lifts euro versus yen

Japan’s quarterly growth slowed to 0.3% in the second quarter, with downbeat demand data weighing on the yen.

Reported · Written up by our desk · Major Pairs

The EUR/JPY pair climbed for a third straight day, supported by a weaker yen after Japan reported softer growth data, according to FXStreet.

FXStreet noted the pair confirmed a move above the 50% retracement of a late July decline and was trading around the 184.50 area, with resistance near 185.00 as the outlook improved.

Japan’s Cabinet Office said economic growth slowed to 0.3% in the second quarter versus a 0.5% market expectation, and year over year growth decelerated to 1.1% from 1.8% in the prior quarter.

Brown Brothers Harriman pointed to flat private consumption and a 0.2 percentage point drag from private non residential investment, arguing the weak domestic demand would do little to ease Japan’s fiscal concerns and remain a headwind for the yen.

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