EUR/JPY struggling for direction, awaits EU CPI

After seesawing between tepid gains and minor losses, the EUR/JPY cross is now trading in neutral territory ahead of Euro-zone CPI print.

Currently hovering around 115.00 mark, the cross opened with a weekly bearish gap but managed to recover quickly amid renewed weakness around the Japanese Yen. However, an offered tone around the shared currency failed to support the pair's recovery momentum and the cross remained confined in a narrow trading band around 115.00 handle. 

Markets now look forward to the preliminary release of Euro-zone CPI for the month of October, which would provide impetus for the cross movement on Monday. Meanwhile, BOJ monetary policy decision and subsequent press conference would be the next big fundamental trigger that would assist investors to determine next leg of directional move for the cross.

Technical levels to watch

From current levels, 115.40-45 area is likely to act as immediate resistance above which the cross is likely to aim towards October daily closing highs resistance near 115.95-116.00 region. On the downside, weakness below 114.70 level (session low), leading to a subsequent break below 100-day SMA support near 114.60 region, is likely to drag the cross further towards 50-day SMA support near 114.30-25 region.

EURJPY from Tip TV Productions on Vimeo.