Global macro overview for 24/05/2017:
The Gfk Consumer Climate benchmark from Germany has hit its highest level since 2001. Market participants expected no change from the already strong level of 10.2 points, but the fresh print was at the level of 10.4 points. This figure, yesterday's Ifo data, and the recent flash data for Germany's PMI Composite Index in May might reflect a healthy growth rate in the country. It means the estimated GDP for the second quarter might easily beat market expectations. The second quarter GDP data is scheduled for release for 15th of August 2017.
Let's now take a look at the EUR/JPY technical picture on the H4 time frame. The market is trading in a very tight range between the levels of 125.39 - 124.50. The market conditions look overbought, but the price is still trading inside of the parallel channel. Without violation of the level of 124.50 the bear camp can not take the control over this market and test the next support at the level of 123.26. Moreover, the biggest support is still between the levels of 123.26 - 121.97, so the price might bounce or trade sideways for some time when it gets there. However, if this level is clearly breached, then the bears will be in full control over this market and might target the gap to finally fill it.
