FXStreet (Mumbai) – The bid tone around the EUR/JPY cross reduced slightly in the mid-European session after the euro received fresh blow from the EU CPI figures which showed deflation returning in the 19-nations bloc.
EUR/JPY faces stiff hurdle near 135.10 levels
Currently, the EUR/JPY pair trades 0.17% higher at 134.95, retreating slightly from 135.05 session highs post data release. The EUR/JPY cross edged slightly lower, as the shared currency remains pressured on the persisting risk-on trades, with the latest EU CPI data also adding to the weakness.
The Euro zone September CPI declined from 0.2% to -0.1% y/y, while the core gauge remained at 0.9%, Eurostat revealed on Wednesday.
Meanwhile, a weaker yen versus the greenback amid risk-on rally in the global equities restricts further downward moves in the cross.
Markets now shift focus towards a set of US macro data and Fed Yellen’s speech for fresh incentives on the pair.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 135.12 (Today’s High) levels and above which it could extend gains to 135.43 (Sept 25 High) levels. To the downside immediate support might be located at 134.07 (Sept 25 Low) below that at 133.97 (Sept 24 Low) levels.
(Market News Provided by FXstreet)