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EUR/JPY has recovered slightly from fresh multi-month lows at 131.58 hit earlier in the Asian session.
- The pair is extending weakness after breaking below strong trendline support at 133.29
- Heading into the European session, inflation and employment data from Germany will be in focus
- German CPI growth seen to show a 0.1% decline m/m, after a negative 0.2% last month, while unemployment rate expected to remain at 6.4%
- Immediate resistance for the pair lies at 132 level, while support is seen at 131.58 (session low)
- Daily Stochs are at oversold levels, could see some correction
Resistance Levels:
R1: 132 (psychological level)
R2: 132.56 (4h Tenkan)
R3: 132.92 (4h Kijun)
Support Levels:
S1: 131.58 (session low)
S2: 131.30 (Apr 30 low)
S3: 131 (psychological level)
