EUR/JPY peeps above 130.00 handle

The bid tone around the EUR gathered pace in Europe, pushing the EUR/JPY pair higher to 130.06 levels, although further gains are hard to come as investors await the preliminary German CPI release. 

Hovers around 1-hour 100-MA

The pair was last seen trading around 129.93 (1-hour 100-MA). German data due at 12:00 GMT is expected to show the cost of living as represented by the CPI cooled to 1.5% y/y in July vs. 1.6% in June. The Harmonised CPI is also expected to drop to 1.4% from 1.5%. A weaker-than-expected CPI could yield a pullback in the EUR.

The US GDP could influence the pair as well, although post German CPI the pair would be more vulnerable to the broader market sentiment. Losses in the US stocks could weigh over the EUR/JPY cross  (Yen being safe haven & EUR a growth currency) and vice versa. 

EUR/JPY Technical Levels

A break above 130.14 (1-hour 50-MA) would open up upside towards 130.50 (July 21 high) and 131.00 (psychological figure). On the downside, support is seen at 129.55 (session low) ahead of 128.87 (July 24 low) and 128.49 (July 13 low). 

Also watch out for 130.61 (weekly 200-MA). The average has capped gains for three straight weeks.