EUR/JPY: JPY Retail Trade miss provides support in early Tokyo
- The EUR/JPY whips on Powell-fueled volatility.
- EU CPI headliner could build on Yen weakness from Retail Trade miss.
The EUR/JPY has been climbing in early Wednesday trading following a volatile Tuesday, currently trading into the 149.40 level at the start of Tokyo markets.
The pair whipped on Tuesday as the Euro and the Yen traded blows through the day, culminating in the two currencies competing following a bullish turnout from the Fed's Jerome Powell that sent market sentiment swinging. The Yen appears to have lost the upper hand at the start of the Tokyo trading session on the back of disappointing Retail Trade figures, with the headline year-on-year figures coming in at a disappointing 1.6% versus the forecast 2.1%.
The Euro will see a busy Wednesday with a slew of data to come out early in the day, but the key component will be the Eurozone CPI due at 10:00 GMT. Market estimates of 1.1% for Core CPI are calling for a minor uptick over the previous 1.0% figure, while year-on-year data for full-basket CPI is expected to contract slightly, at 1.2% versus the previous 1.3%.
Japanese data is largely muted this week but will see Foreign Investment late today at 23:50.
EUR/JPY Technicals
The pair is continuing to muddle in a contracting consolidation zone, floating just above the 200-day SMA but still below the 34 EMA which is providing downward pressure as it constricts price action. Support is currently built up from 148.75 to 147.95, with resistance at the 150.00 major handle and 150.94 just beyond.