EUR/JPY is rangebound below 141.00 and still vulnerable

FXStreet (Moscow) - EUR/JPY has retreated form the Asian high set at 141.34 and returned to the range below the pivotal level of 141.00; the cross is consolidating with a downside bias.

EUR/JPY is double hit

EUR/JPY kept up with GBP/JPY pace and expanded its intraday range up to nearly 300 pips on Thursday as the cross collapsed from from the intraday high of 143.36 to the intraday low of 140.69. The downside in EUR/JPY started with the JPY buying across the board and was intensified by EUR falling down on Draghi’s speech. The head of the ECB made it very clear that he was dissatisfied with EUR rise. His comments about price stability and deflation risks related to currency movements spooked EUR-bulls across the board. Today we have a Final CPI report in Germany and an Employment change report in Eurozone. While these reports may help to get a clearer picture about the state to the European economy, they will hardly be able to move the market focused on the rid-aversion theme. EUR/JPY may resume the downside later during the day in case of further escalation of geopolitical tensions. The closes resistance comes at 141.00 and followed by current Asian high at 141.31, the support is seen at NY low of 140.69. Once it is broken, the downside will accelerate to 140.20.

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 141.79, with support below at 140.18, 139.09 and 137.48, with resistance above at 142.88, 144.49, and 145.58. Hourly Moving Averages are bearish, with the 200SMA at 141.94 and the daily 20EMA at 141.25. Hourly RSI is neutral at 30.

China senior government source: No need to panic if China growth slows down

According to MNI, citing a Chinese senior government source, the market should not panic if China's Q1 growth comes below target. The official also added that a RRR cut "seems far off for now", as further accomodative policies would damage the government's aim on cutting down over-leveraged Chinese industries. The comments seem to suggest that China might be getting ready for slower economic results, despite still forecasting a 7.5% GDP/year.
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