EUR/JPY bounces off 10-day MA on JPY selling

• The EUR/JPY cross is reporting gains in Asia, largely on account of JPY selling.
• The bullish move may gather pace if the Eurozone inflation figures, due later today, beat estimates.

Currently, the EUR/JPY is trading at 132.26, having bounced off the ascending (bullish) 10-day moving average (MA) earlier today.

The gains are likely associated with the rise in the USD/JPY pair to 10-month highs above 113.50. The European desks will likely join the JPY selling party later today, unless the US-China trade tensions escalate, resulting in risk-averse action in the equities. In that case, the JPY may pick up a strong bid.

Further, the FX desks may put a bid under the common currency if the preliminary Eurozone consumer price inflation data, due for release at 09:00 GMT, prints above the estimate of 2.1 percent year-on-year rise.

The JPY could also gather steam if the US personal spending and core personal expenditure price index, scheduled for release at 12:30 GMT, beats estimates, pushing the 10-year treasury yield above the recent high of 3.10 percent.

USD/JPY Technical Levels

Resistance: 132.40 (5-day MA), 133.13 (Sept. 21 high), 133.49 (Apr. 24 high)

Support: 131.95 (10-day MA), 131.58 (previous day’s low), 131.30 (200-day MA)