FxWirePro: EUR/JPY pauses 2-day downside, Eurozone inflation data eyed for impetus

Chart - Courtesy Trading View 

EUR/JPY was trading 0.06% higher on the day at 143.34 at around 05:50 GMT.

The pair has paused a 2-day downtrend as markets await Eurozone inflation data for further impetus.

Analysts expect that eurozone headline HICP will decline to 10.4% vs. the prior release of 10.6%. While the core HICP is seen unchanged at 5%.

Decline in inflationary pressures will bring some relief to the European Central Bank (ECB), but may not ease the odds of a higher rate hike announcement.

On the other side, an improvement in investors’ risk appetite has reduced demand for the Japanese yen, keeping scope for downside.

Technical bias for the pair is bearish. Scope for dip till 110-EMA at 142.03. Bearish invalidation only above 21-EMA.