The euro fell for the second day with the strengthening of Yen, the euro weighs the most softening growth

• EUR/JPY slides about 163.00, the main support test from the upward trend line and 200 days.
• The euro remains under pressure after reviewing the Q1 GDP despite the optimistic industrial product.
• Safe infiltration flows enhance the yen amid cautious risk feelings.

EUR/JPY extended its withdrawal for a second consecutive session on Thursday, as it decreased by 0.5 % to circulate around 163.00, with the Japanese yen gaining traction on safe driving flows. The euro (EUR) is also pressure after the euro area growth data showed moderation, prompting merchants to reassess expectations near the region.

The latest economic data showed that the eurozone economy grew by 0.3 % in the first quarter, just less than the initial estimate of 0.4 %, although it still represents the sixth quarter in a row of expansion. The annual growth lasted by 1.2 %, while industrial production was surprised by a 2.6 % illiterate leap in March. Despite the industrial rhythm, printing the most softened local product (GDP) maintains pressure on the European Central Bank (ECB) to maintain Duofish’s position, especially as inflation continues.

The Japanese yen derives support from the wider macroeconomic and geopolitical factors. I pressed uncertainty in the US dollar continuous trade (USD), and lifting other major currencies, including yen. There was also a broader gathering in Asian currencies, driven by speculation that the American administration prefers to be the weakest dollar for trade flows. Washington has repeatedly argued that the estimated Asian currencies have made an unfair advantage of regional exporters. Meanwhile, attention is turned into the United States and Japan trade negotiations, as Tokyo aims to secure a deal by June.

From a technical perspective, EUR/JPY is currently testing an upward trend line from the lowest levels of March, converging with the 200 -day SIA moving average (EMA) at 161.86. This region remains a major field of support. The broader structure is still intact as long as this level carries, as buyers are likely to interfere in the declines. A continuous break under the convergence of the direction line would indicate the possibility of more from the negative side about 160.50.

The Relative Power Index (RSI) decreased to 50.9, where it hovers in a neutral area and a suggestion of stopping in the upscale momentum instead of reflecting the complete direction. On the upper side, 164.50 continues to get CAP gains, and the outbreak of this level remains to resume biaas.eur/JPY bullish in a critical turn, where the 162.00-161.85 region works as a major technical axis. The apostasy can lead to a new bullish momentum, but the low interruption will change the near -term bias in favor of the yen.