EUR/JPY down into 157.80 in broad-market risk aversion moves sparked by US CPI beat

EUR/JPY down almost 0.3% for Thursday after broad-market risk appetite soured on US CPI inflation.
Japan data broadly came in red on Wednesday, hobbling the JPY and limiting Yen upside.
Euro traders will be looking ahead to ECB President Lagarde's speech on Friday.

Joshua Gibson FXStreet

The EUR/JPY is down around 0.5% from the day's highs, trading down below the 158.00 handle as markets rotate out of risk assets following a data-beat for the US Consumer Price Index (CPI) print that showed inflation continues to shrink much slower than investors are hoping for.

US CPI inflation holds steady at 3.7% in September vs. 3.6% forecast

With US inflation sticking higher than expected, market fears of the Federal Reserve (Fed) sticking to their higher-for-longer strategy on interest rates are back on the rise, and investors will now be keeping an eye out for an additional rate hike from the US central bank before the end of the year.

Japan's Producer Price Index (PPI) and Machinery Orders figures on Wednesday broadly missed the mark, with Japan PPI printing at a disappointing -0.3% for September against the forecast 0.1% uptick, and slipping further down from the previous month's 0.3%.

Machinery Orders for August also declined by 0.5%, an improvement from the previous reading of -1.1% but still far below the anticipated read of 0.4%.

With the dust settling after the US CPI inflation market-beater, Euro (EUR) traders will now be looking ahead to a speech on Friday from European Central Bank (ECB) President Christine Lagarde.

President Lagarde is due to take part in a joint-panel discussion at the World Bank Group and International Monetary Fund (IMF) annual meeting currently being held in Morocco. The panel is slated to be a discussion centered on the global economy, and investors will be keeping an ear out for any hints about the ECB's stance looking forward.

EUR/JPY Technical Outlook

Intraday action sees the EUR/JPY twisting around familiar levels, with the pair getting knocked back into the early week's trading range while a flat 200-hour Simple Moving Average (SMA) sits below current price action near 157.20.

On the daily candlesticks, the EUR/JPY remains constrained by the 50-day SMA, and continues to catch bids from the rising trendline from May's swing low into 145.00, and the ceiling on near-term bullish momentum remains the 159.00 major handle.

EUR/JPY Daily Chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price	157.86
Today Daily Change	-0.53
Today Daily Change %	-0.33
Today daily open	158.39

Trends
Daily SMA20	157.46
Daily SMA50	157.83
Daily SMA100	156.06
Daily SMA200	150.13

Levels
Previous Daily High	158.47
Previous Daily Low	157.52
Previous Weekly High	158.48
Previous Weekly Low	154.39
Previous Monthly High	158.66
Previous Monthly Low	156.58
Daily Fibonacci 38.2%	158.11
Daily Fibonacci 61.8%	157.89
Daily Pivot Point S1	157.79
Daily Pivot Point S2	157.18
Daily Pivot Point S3	156.84
Daily Pivot Point R1	158.73
Daily Pivot Point R2	159.07
Daily Pivot Point R3	159.67

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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