FxWirePro: EUR/JPY hits fresh multi-month lows at 131.58, German data in focus

EUR/JPY has recovered slightly from fresh multi-month lows at 131.58 hit earlier in the Asian session.

• The pair is extending weakness after breaking below strong trendline support at 133.29
   
• Heading into the European session, inflation and employment data from Germany will be in focus
   
• German CPI growth seen to show a 0.1% decline m/m, after a negative 0.2% last month, while unemployment rate expected to remain at 6.4%
   
• Immediate resistance for the pair lies at 132 level, while support is seen at 131.58 (session low)
   
• Daily Stochs are at oversold levels, could see some correction 

Resistance Levels:

R1: 132 (psychological level)
R2: 132.56 (4h Tenkan)
R3: 132.92 (4h Kijun)

Support Levels:

S1: 131.58 (session low)
S2: 131.30 (Apr 30 low)
S3: 131 (psychological level)