FxWirePro: EUR/JPY hovers around 21-EMA, focus on German CPI for further direction

EUR/JPY chart on Trading View used for analysis

• EUR/JPY is extending rangebound trade, hovers around 21-EMA.
   
• A slew of data from the euro area due later will provide some trade opportunity.
   
• We have on cards: Euro Zone Economic Sentiment, Consumer Confidence (Final) and German CPI data.
   
• A weaker-than-expected German CPI would validate ECB's recent dovish turn and send the single currency lower.
   
• Technical studies are neutral to slightly bullish on the daily charts. Major trend is bearish.
   
• Decisive break above 21-EMA will see test of 55-EMA at 126.23, while break below 20-DMA support will see resumption of bear trend.

Support levels - 124.42 (20-DMA), 123.23 (23.6% Fib)

Resistance levels - 125.96 (38.2% Fib), 126.23 (55-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.