FxWirePro: EUR/JPY weakens for the second straight session, yen ignores weak Tokyo inflation data

Chart - Courtesy Trading View 

EUR/JPY was trading 0.27% lower on the day at 144.54 at around 11:30 GMT, extending previous session's weakness. 

The pair is retracing from yearly high at 145.56, has slipped below 5-DMA as yen pays little heed to weak Tokyo inflation data.

Data released by the Statistics Bureau of Japan has showed earlier on Friday that Tokyo Consumer Price Index (CPI) softened heavily in February.

Tokyo annual headline CPI has dropped to 3.4%, much below forecasts at 4.1% and the prior release of 4.4%. 

The core CPI that excludes the impact of energy and food prices improved to 3.2% from 3.1% expected and the former release of 3.0%. 

It is worth noting that the Bank of Japan (BoJ) leadership has been favoring current expansionary monetary policy, as inflation is coming from international forces and not from domestic demand.

Speculation for the Japanese Yen might remain elevated as BoJ Governor Nominee Kazuo Ueda could abandon or phase out Yield Curve Control (YCC).

Support levels - 144.02 (200H MA), 143.82 (Triangle top), 143.21 (21-EMA)

Resistance levels - 144.59 (5-DMA), 145, 145.77 (Upper BB)

Summary: EUR/JPY struggling to extend Symmetric Triangle breakout. The pair has slipped below 5-DMA and retrace below Triangle top will see more downside.