EUR/JPY pays little heed to EU data

By FXStreet FXStreet (Mumbai) – The EUR/JPY pair continues to trade around 135.25 levels as markets paid little attention to the upbeat Eurozone PMI figures and a slight month-on-month drop in the retail sales figure.

Awaits ECB decision

The EUR traders are waiting on the sidelines ahead of the ECB event scheduled later today. The bank is widely expected to keep rates and other key policy instruments unchanged. However, Draghi is expected to stress readiness to do more if needed; given the CNY devaluation and its effect on Eurozone inflation and exports.

Meanwhile, the uptick in the European stocks has weakened the bid tone around JPY. Consequently, we are witnessing a lack lustre action in the EUR/JPY cross.

EUR/JPY Technical Levels

The immediate resistance is located at 135.59 (5-DMA), above which gains could be extended to 136.25 (200-DMA). On the other side, support is seen at 135.00 and 134.67 (Sep 1 low).
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Source:: FX Street