FxWirePro: EUR/JPY extends range trade, mixed Eurozone inflation data fails to impress

EUR/JPY chart - Trading View 

EUR/JPY was extending range trade for the second straight session. The single currency unimpressed after mixed Eurozone inflation data.

Eurostat’s final reading of the Eurozone CPI report for July showed the consumer prices came in at +0.4% y/y, inline with flash estimate and expectations. 

Data showed core inflation figures rose by 1.2% versus +1.2% previous and +1.2% expectations.   

On a monthly basis, EZ CPI decelerated by 0.4% versus -0.3% expectations and +0.3% previous while the core CPI numbers arrived at -0.3% versus +0.3% expected and -0.2% last.

EUR/JPY was trading at 125.82 at around 09:35 GMT with session high at 126.06 and low at 125.59.

Price action is consolidating break above 200W MA and bearish divergence on RSI and Stochs on the daily charts exerts some downside pressure.

Major Support Levels: 

S1: 124.94 (200W MA)

S2: 124.75 (21-EMA)

S3: 123.22 (38.2% Fib)

Major Resistance Levels: 

R1: 125.98 (5-DMA)

R2: 126.69 (Upper BB)

R3: 128.67 (61.8% Fib)

Summary: Upside intact as long as pair holds above 200W MA. Next major bull target lies at 61.8% Fib at 128.67.