5 Jan 2015
EUR/JPY falls below 143.00 on weak German inflation data
FXStreet (Mumbai) - The EUR/JPY pair has extended losses to trade marginally below the 143.00 levels after the official data showed German harmonized inflation reading in December at its lowest since 2009.
The pair now trades 1.13% lower at 142.98 levels. The single currency extended losses after the German harmonized inflation reading for December came-in at 0.1% year-on-year, missing the estimate of 0.2%, and down from the previous reading of 0.5%. The weak German inflation data support the case for more aggressive monetary action in the Eurozone. Moreover, markets are expecting the European Central Bank (ECB) on a sovereign QE program in Q1 2015.
Meanwhile, the USD/JPY pair has 0.39% to trade at 120.00 levels, tracking weakness in the long-end of the treasury market curve.
EUR/JPY Technical Levels
The pair has an immediate support located at 142.63, under which it could test 142.40 (100-DMA). Meanwhile, resistance is seen at 143.56 and 144.28 (5-DMA) levels.
The pair now trades 1.13% lower at 142.98 levels. The single currency extended losses after the German harmonized inflation reading for December came-in at 0.1% year-on-year, missing the estimate of 0.2%, and down from the previous reading of 0.5%. The weak German inflation data support the case for more aggressive monetary action in the Eurozone. Moreover, markets are expecting the European Central Bank (ECB) on a sovereign QE program in Q1 2015.
Meanwhile, the USD/JPY pair has 0.39% to trade at 120.00 levels, tracking weakness in the long-end of the treasury market curve.
EUR/JPY Technical Levels
The pair has an immediate support located at 142.63, under which it could test 142.40 (100-DMA). Meanwhile, resistance is seen at 143.56 and 144.28 (5-DMA) levels.