Forex: EUR/JPY down by 1.00% on the day, at 127.85

FXstreet.com (Barcelona) - The EUR/JPY is already trading below the 128.00 round level, down at 127.85 (-1.00% on the day) as the EUR/JPY is “currently we are viewing this as the market taking a breather ahead of tackling this resistance (131.12)”, according to Commerzbank analysts. The cross fell to as low as 127.77 following the publication of US GDP data and option expires, coming close to February high at 127.71.

Annualized data had a big improvement from Q4, from 0.4% to 2.5% growth, but came in lower than market consensus of 3.0%. GDP price also failed to meet expectations: up from 1.0% to 1.2%, below 1.4% consensus.

The US economic calendar also presented flash Personal Consumption Expenditures, which rising pace eased from 1.6% to 0.9% (consensus of 1.1%) in Q1 (QoQ), and its Core data, that rose from 1.0% to 1.2% as expected. Consumer spending and imports rose 3.2% and 5.4%, respectively. US Reuters/Michigan consumer sentiment is due shortly and is expected to rise from 72.3 to 73.2 in April.

“Monitor the hourly support at 127.87 (23/04/2013 low). Another support can be found at 126.44. An hourly resistance is at 129.99 (intraday high). A key resistance is at 131.12 (11/04/2013 high)”, wrote MIG Bank analyst Bijoy Kar and Luc Luyet, as they await a fresh signal to enter a trade.