A weaker-than-expected German CPI failed to trigger fresh sell-off in EUR, thereby ensuring the EUR/JPY pair remained largely unaffected around 124.50 levels.
JPY saved the day
The offered tone around JPY strengthened ahead of the US GDP data, pushing the USD/JPY above 113.00 levels. This protected the EUR/JPY cross from falling after German CPI release. The preliminary figures showed German inflation in the negative territory for the first time after September 2015.
However, traders remain cautious ahead of the US Q4 preliminary GDP report. Consequently, the data did not result in a knee jerk reaction in EUR.
EUR/JPY Technical Levels
The immediate resistance is seen at 124.50, above which the cross could target 125.07 (hourly 200-MA). On the other hand, a break below the immediate support at 123.87 (hourly 100-MA) would open doors for a sell-off 123.06 (Feb 23 low).
(Market News Provided by FXstreet)