EUR/JPY moves closer to multi-month tops, around mid-131.00s

Following a brief pause on Wednesday, the EUR/JPY cross caught some fresh bids and has now moved within striking distance of nearly 19-month tops post-EZ CPI release. 

The shared currency moved higher across the board after the flash inflation figures showed headline consumer prices, as measured by CPI is expected to rise by 1.5% annualized rate during August, while prices excluding food, energy, alcohol, and tobacco products were also expected to tick higher to 1.3% y-o-y. 

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Adding to this, the prevalent risk-on environment, on easing geopolitical tensions over recent N. Korean headlines, was seen weighing on the Japanese Yen's safe-haven appeal and further collaborated to the pair's up-move through early European session on Thursday.

With the key EZ macro data out of the way, a follow through bullish momentum, even beyond yearly tops, now seems a distinct possibility amid continuous improvement in investors' risk appetite. 

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Technical levels to watch

Immediate resistance is pegged near 131.70 level, above which the cross is likely to surpass the 132.00 handle and aim towards testing Jan. 2016 highs resistance near 132.30 level.

On the flip side, the 131.00 region now seems to have emerged as immediate support, which if broken might trigger additional profit taking slide and turn the cross vulnerable to head back towards retesting the key 130.00 psychological mark.