EUR/JPY deflates from highs near 123.70 on German data

Despite in-line with expectations German GDP and CPI releases, the EUR/JPY cross failed to sustain at higher levels and drifted slightly lower.

EUR/JPY: Focus shifts to US macro news

The EUR/JPY pair now returns to the red zone to trade at 123.59, having posted daily highs at 123.72 last hour. Markets appear to have already priced-in an upbeat German GDP print and hence, adopted ‘Sell the fact’ strategy on the data release.

German economy continues its strong performance - ING

The cross witnessed sharp losses a day before after the Euro slumped on resurgent US dollar demand, following the release of better-than expected US PPI and jobless claims data. Meanwhile, the USD/JPY pair remained capped by 114 handle, providing little help to the spot.

Later today, the cross will get influenced by the sentiment on the European equities and US dataflow lined up in the NA session.

EUR/JPY: Technical Levels                               

Higher side: 123.83 (5-DMA) 124.11 (May 5 high), 124.52/61 (May 7 & 6 highs)

Lower side: 123.27 (May 11 low), 122.94/87 (May 8 & 5 low), 122.53 (May 4 low)