EUR/JPY building on bullish momentum above 100-DMA, German CPI in focus

The EUR/JPY cross extended its recovery trend for the fifth consecutive session and jumped to a fresh two-week high level as ahead of key German CPI release.

Currently trading around 114.90 level, the cross touched 115.00 psychological mark for the first time since Oct. 14 and is being supported by a bounce back in the EUR/USD major. Moreover, persistent offered tone around the Japanese Yen has also contributed to the pair's bullish momentum during the course of the week. 

Later on Friday, the preliminary release of German CPI would provide fresh impetus, while US Q3 GDP print would determine the safe-haven demand for the Japanese Yen and trigger some volatility around the EUR/JPY cross.

From technical perspective, the cross is sustaining its move back above 100-day SMA and hence, seems more likely to extend its near-term upward trajectory.

Technical levels to watch

On a sustained move above 115.00 mark, the cross seems to immediately dart towards 115.40-45 resistance area before aiming towards October daily closing high resistance near 115.95-116.00 region. On the downside, 100-day SMA near 114.65-60 region now seems to protect immediate downside below which the cross is likely to snap its winning streak and head back towards 50-day SMA support near 114.25-20 area.