EUR/JPY remains capped below 161.00 following German CPI data

EUR/JPY trades weaker near 160.90 in Friday’s early European session.
The German Harmonized Index of Consumer Prices (HICP) rose 3.1% YoY in January, in line with market expectations.
The Japanese Yen was further weakened by dovish comments from Bank of Japan (BoJ) policymakers on Thursday.

Lallalit Srijandorn FXStreet

The EUR/JPY cross snap a two-day winning streak below the 161.00 psychological mark during the early European session on Friday. The cross attracts some intraday sellers following the German inflation data. Investors await German Buba President Nagel's speech later on Friday for fresh catalysts. At press time, EUR/JPY is trading at 160.90, down 0.02% on the day.

The latest data from the German statistics office Destatis on Friday showed that the German Harmonized Index of Consumer Prices (HICP) rose 3.1% YoY in January. This figure was in line with market expectations. On a monthly basis, the nation’s HICP dropped 0.2% MoM in January from a 0.2% decline in December. Additionally, the headline Consumer Price Index (CPI) came in at 0.2% MoM and 2.9% YoY in January.

European Central Bank (ECB) Governing Council member Martins Kazaks said investor hopes for monetary easing at one of the next two meetings might be too aggressive. Kazaks further stated that he will wait until the inflation story is over, and then he will consider rate cuts step by step. Meanwhile, ECB Chief Economist Philip Lane and ECB policymaker Pierre Wunsch said that they prefer to wait for more data before cutting rates.

On the other hand, the dovish remarks from the Japanese policymakers weigh on the Japanese Yen (JPY) and act as a tailwind for the EUR/JPY cross. The Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said that the central bank will not hike aggressively upon ending negative rates, even after ending its negative interest rate policy. Furthermore, BoJ Governor Kazuo Ueda said on Friday that the possibilities are high for accommodative conditions to stay even if negative rates are abandoned.

Later on Friday, traders will monitor the Italian Industrial Output and German Buba President Nagel's speech. Next week, the Eurozone and Japan’s Gross Domestic Product (GDP) for the fourth quarter (Q4) will be released. Traders will find trading opportunities around the EUR/JPY cross.

EUR/JPY

Overview
Today last price	160.91
Today Daily Change	-0.02
Today Daily Change %	-0.01
Today daily open	160.93

Trends
Daily SMA20	160.15
Daily SMA50	158.4
Daily SMA100	159.07
Daily SMA200	156.95

Levels
Previous Daily High	161
Previous Daily Low	159.47
Previous Weekly High	160.84
Previous Weekly Low	158.08
Previous Monthly High	161.87
Previous Monthly Low	155.07
Daily Fibonacci 38.2%	160.41
Daily Fibonacci 61.8%	160.05
Daily Pivot Point S1	159.93
Daily Pivot Point S2	158.94
Daily Pivot Point S3	158.4
Daily Pivot Point R1	161.46
Daily Pivot Point R2	161.99
Daily Pivot Point R3	162.99

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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