EUR/JPY tests 23.6% Fibo support, eyes German CPI release

The EUR/JPY pair tested 118.64 (23.6% of 113.72-120.16) levels ahead of the German data release, which is expected to show the cost of living remained unchanged in November.

Rejected at 119.00

The offered tone around the Yen gathered pace, helping the EUR/JPY recover from the session low of 118.55. However, the cross failed to take out the psychological resistance of 119.00.

The preliminary data due later today is expected to show the CPI for November ticked higher to 0.9% y/y from the October print of 0.8%. Apart from the data, the oil price action and the resulting risk-on/risk-off could heat up the battle between the funding currencies – EUR & JPY.

EUR/JPY Technical Levels

A break above 119.00 (session high) would open doors for a rise to 119.31 (Nov 25 low), above which a major hurdle at 119.78 (previous day’s high) could be put to test. On the other hand, a breakdown of support at 118.64 (23.6% Fibo) would open doors for sell-off to 118.15 (Nov 22 high) and 117.70 (38.2% Fibo).