EUR/JPY looks for direction in the mid-122.00 ahead of G-20

• Price action in EUR/JPY stays inconclusive so far today around 122.50.
• EMU flash CPI surprised to the upside in June.
• G-20 event grabs all the attention today and tomorrow.

EUR/JPY is clinging to the positive territory so far today around the mid-122.00s as market participants continue to look to the G-20 summit for clearer near term direction in the global markets.

EUR/JPY bid post-EMU CPI

The cross is now giving away part of the earlier spike to the area of 122.60, or daily highs, following higher-than-expected inflation figures in the euro area for the current month.

In fact, headline consumer prices measured by the CPI are expected to rise at an annualized 1.2% in June and 1.1% when excluding food and energy costs, a tad above initial forecasts. These results lent fresh oxygen to the European currency in an otherwise flat trading theme.

Further out, market participants remain focused on the US-China trade front and the upcoming Trump-Xi meeting, all amidst market chatter including the possibility of further US tariffs and Chinese preconditions to resume negotiations.

EUR/JPY relevant levels

At the moment the cross is gaining 0.01% at 122.54 and faces the next hurdle at 122.89 (high Jun.27) followed by 123.17 (high Jun.11) and then 123.75 (high May 21). On the other hand, a breakdown of 120.95 (low Jun.21) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).