EUR/JPY consolidates above 120.70, eyes on EZ CPI

The EUR/JPY pair is seen consolidating yesterday’s drop in the upper bound of 120 handle, remaining well offered amid risk-aversion and dovish ECB.

EUR/JPY: Yen firmer, despite mixed Japanese data

The EUR/JPY pair now drops -0.18% to 120.80, clinging to strong support near 120.70 region. The spot stalled its selling spiral, as the bears take a breather before the next push lower.

The cross remains under pressure, in wake of a dovish tilt from the ECB, which disappointed markets, as they had expected Draghi to offer some hints on tapering.

Meanwhile, persisting risk-aversion on the back of lingering geo-political tensions around North Korea, boosts the safe-haven bids for the yen, thus, collaborating to the downside in the cross.

Later today, the pair will get influenced by the German retail sales, Eurozone CPI and US Q1 GDP report.

EUR/JPY: Technical Levels                               

Higher side: 121.50 (psychological levels) 121.73 (classic R1), 122 (6-week tops)

Lower side: 120.39/28 (classic S2/ 100-DMA), 120 (zero figure), 119.37 (50-DMA)