EUR/JPY falls victim of JPY strength

FXStreet (Moscow) - EUR/JPYis under selling pressure as the cross moved down to 141.41 after opening at 141.56

Indecision is the word

EUR/JPY was rather volatile yesterday as better than expected EZ PMI effect was short-lived. The cross reached the intraday high at 141.99 only to tumble to 141.17. Today’s German IFO numbers and Draghi’s speech are in focus. According to the forecast, the IFO survey will show a slight improvement in current conditions, while business climate and expectations indicators might weaken. Positive numbers will drive EUR slightly higher across the board, but they won’t become a game changer for the single currency as the markets are fixated on inflation data. From the technical point of view, EUR/JPY is in bearish mode as long as it trades below 142.00 resistance level. The break below 141.15 is not out of the questions if JPY gains support on the back of anti-risk sentiments and positive Japanese inflation numbers expectations. This will darken the cross perspectives and opens the way to 140.60.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 141.63, with support below at 141.23, 140.79 and 140.40, with resistance above at 142.07, 142.47, and 142.91. Hourly Moving Averages are neutral with the 200SMA at 141.28 and the daily 20EMA at 141.41. Hourly RSI is bullish at 53.