EUR/JPY looking for some lift ahead of German PPI, EU ZEW data

EUR/JPY is trading upwards to kick off the Tokyo trading session, testing testerday's high of 132.37 as of writing.

The pair experienced a sedate Monday, with Chinese institutions closed for the first half of the week to celebrate Chinese New Year, and the US also dark to observe President's Day.

EUR/JPY may have found a floor from 131.76, as the encroaching Yen begins to backoff following Friday's threats from the Bank of Japan (BoJ) that they are "watching FX markets closely", and uttered a willingness to intervene if things get much worse, though they see no need to do so now. The thinly-veiled threat aimed at Yen buyers seemed to turn the trick, with JPY backing off from recent highs.

Europe will see a slew of mid-tier economic data drop today, most notably PPI numbers for Germany at 07:00 GMT, and ZEW Economic Sentiment results for both Germany and the broad Eurozone at 10:00. With the European Central Bank on track to begin lifting interest rates in the near future, positive figures could give Euro bulls the push they need to resume bidding up EUR/JPY and keep the long-term bull trend intact.

EUR/JPY Technicals

The pair has moved lower for two straight weeks from a two and a half-year high of 137.50, and although a floor may have been found here, price is still getting very close to the 200-day SMA currently sitting at 130.97. H4 charts show strong support building at 131.80, and if the Yen continues to ease off its high point, then EUR/JPY could begin challenging resistance stacked at 132.55, the 133.00 major handle, and 133.67.