EUR/JPY surges through 115.00 mark after German CPI

The EUR/JPY cross build on to its recent recovery momentum and is now building on to its move above 115.00 mark following the preliminary release of German CPI.

Currently trading at a fresh two-week high, the cross caught fresh bids after German consumer inflation, as measured by CPI, surpassed expectations and came-in at 0.2% m-o-m for October, up from 0.1% recorded in September and expected. The yearly reading matched consensus estimates to print 0.8%. Meanwhile, the broader HICP gauge also recorded strong-than-expected yearly gain of 0.7% and 0.2% on monthly basis. 

Upbeat German CPI prints lifted the shared currency across the board and helped the cross to maintain its strong bid tone for the fifth consecutive session. 

Technical outlook

Gregor Horvat, Chief Technical Strategist at EW-Forecast, notes, "EURJPY is pushing prices higher following a bounce from 113.67 where pair found a support in wave B); at the other side of a trading channel after a break higher a few days back. We see a nice continuation up on the intraday cycle, but it's probably wave C) of E which means that upside can be limited soon. Nice technical resistance area is at 115.00-115.50 where we will track price action closely for evidence of a bearish turn."