FxWirePro: EUR/JPY hits new yearly high above 145 handle, inflation data lifts euro

Chart - Courtesy Trading View 

EUR/JPY was trading 0.20% higher on the day at 144.92 at around 05:50 GMT, extends bull run for the 3rd consecutive session. 

The pair hit fresh yearly highs at 145.67 before paring some gains. The single currency buoyed after inflation data overnight. 

Inflation eased significantly in Germany in March on the back of lower energy prices but was above forecasts, adding pressure on the European Central Bank (ECB) to further tighten policy.

Separately, data showed that Spain's consumer prices rose 3.3% year-on-year in March, the slowest pace since the 12-month period through August 2021 and less than expected by analysts.

The ECB has increased its key deposit rate by 350 basis points to 3% since July and has made it clear future rate hikes will depend on economic data.

Technical Analysis:

- EUR/JPY has erased monthly losses and is on track to close higher for the month

- The pair has retraced above 200-DMA and is extending Symmetric Triangle breakout

- GMMA indicator shows major and minor trend have turned bullish

- Momentum is bullish, volatility is high and rising

Major Support Levels: 143.48 (5-DMA), 142.40 (200H MA)

Major Resistance Levels: 145.94 (Upper BB), 146 (Psychological mark)

Summary: EUR/JPY trades with a bullish bias. The pair is poised for further upside. Weakness only below daily cloud.