EUR/JPY dips below 1-hour 200-MA

Having failed at the weekly 200-MA level of 130.60 earlier this week, the EUR/JPY fell below the 1-hour 200-MA level of 129.67 this Friday morning in Asia. 

Focus on German preliminary CPI reading

German CPI due at 12:00 GMT is expected to show the cost of living rose 1.5% y/y in July vs. 1.6% in June. A weaker-than-expected German preliminary CPI reading could yield a correction in the overbought EUR pairs. Traders would also take note of the Eurozone sentiment indices scheduled for release at 9:00 GMT. 

Meanwhile, the Yen side of the story would be heavily influenced by the action in the European stock markets. 

EUR/JPY Technical Levels

The pair was last seen trading around 129.67 (1-hour 200-MA). A break above 129.91 (100-DMA) would expose 130.19 (1-hour 50-MA) and 130.60 (weekly 200-MA). On the downside, support is seen around 129.54 (previous day’s low) could yield a sell-off to 128.87 (July 24 low) and 128.58 (July 19 low).