The yen is trading weaker despite a sharp loss in Japanese stocks Tuesday, which has been offset by a solid rebound in Chinese stock markets. The Shanghai Composite has rallied over 5% over the last couple of hours of trade, with the index now showing a net 2.9% gain on the day. It appears that the EUR/JPY has been a driver of yen losses, with the cross rallying over 1% to a peak of 133.36 following solid data out of Germany. USD/JPY, meanwhile, lifted nearly a big figure, above Monday’s high on route to a peak so far of 120.07. Support is 119.59-60, resistance at 120.18-20, and the 200-day moving average is at 120.83.

Eurozone Q2 GDP revised up to 0.4% quarter over quarter, 1.5% year over year, from 0.3% quarter over quarter and 1.2% year over year. Meanwhile Q1 was revised up to 0.5% quarter over quarter from 0.4% quarter over quarter. The breakdown, which was released for the first time, showed private consumption and net exports were the main drivers of growth, while investment fell back and detracted 0.1% points from the quarterly growth rate.

So no longer the balanced growth that presented itself in the first quarter and private consumption growth also slowed down, with the main dynamic lying in the export sector. This, however, leaves the Eurozone recovery vulnerable to slowing growth in China.