FxWirePro: EUR/JPY slumps over 0.90%, US inflation data triggers yen rally across the board
Chart - Courtesy Trading View
- EUR/JPY was trading 0.90% lower on the day at 136.73 at around 17:10 GMT
- The pair has paused upside at daily cloud and 55-EMA resistance
- Price action has snapped a 6-day upside and slumped lower after softer US inflation report
- GMMA indicator shows major and minor technical bias remain neutral
Data released by the Bureau of Labour Statistics earlier on Wednesday showed that the headline US CPI remained flat in July against the 0.2% rise anticipated.
The yearly rate decelerated to 8.5% during the reported month, also missing estimates pointing to a fall to 8.7% from the 9.1% in June.
Further, core inflation came in at 0.3% MoM and held steady at a 5.9% YoY rate vs 0.5% and 6.1% expected, respectively.
Major Support and Resistance Levels:
Support levels - 136.68 (38.2% Fib), Resistance levels - 138.34 (55-EMA)
Summary: EUR/JPY retraces from cloud base and 55-EMA resistance. Further weakness on cards. Scope for dip till 200-DMA. Bearish invalidation only above daily cloud.
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