FxWirePro: EUR/JPY struggles to extend previous session's gains, focus on German and eurozone PMI data for impetus

EUR/JPY chart - Trading View 

EUR/JPY was trading largely rangebound at 127.67 at around 05:45 GMT, with session high of 127.86 and low of 127.65.

The pair ignored a 'Bearish Engulfing' pattern on Wednesday's candle and closed 0.31% higher on Thursday's trade.

However, bulls are struggling to extend gains as markets turn cautious with fresh coronavirus (COVID-19) variants reported.

Japanese health authorities came out with more disappointment suggesting a new strain of the deadly virus.

On the data front, Japan’s National Consumer Price Index recovered from -1.2% to -0.6% YoY in January. Core CPI grew beyond -0.4% prior to +0.1% YoY.

Focus now on the German and Eurozone PMIs later today. Poor data could add selling pressure on the shared currency. 

Markit economics' flash Manufacturing Purchasing Managers Index (PMI) for Germany is seen dropping to 56.5 in February from January's 57.1. While Eurozone PMI is forecast to decline to 54.4 in February from January's 54.8.

Technical bias for the pair is bullish. Any weakness on account of data is likely to hold support at 21-EMA at 126.99. Bullish invalidation only below 200W MA.