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EUR/JPY extends gains after EZ CPI

FXStreet (Córdoba) - EUR/JPY pushed higher and printed a fresh 6-week high after data shower Eurozone consumer inflation rose mainly in line with expectations in October.

Eurozone CPI rose 0.4% year-over-year in October while the core index grew 0.7% versus 0.4% and 0.8% expected respectively. Although in line with consensus, inflation remains subdued and well below the ECB target of 2%.

EUR/JPY extended gains and printed a high of 140.47 after the data, but lacked momentum. At time of writing, the cross is trading at 140.30, recording a 1.91% gain on the day.

EUR/JPY was already on demand, having climbed more than 250 pips throughout the day, as the yen weakened sharply after the BoJ surprised markets by significantly expanding its stimulus program.

EUR/JPY technical levels

In terms of technical levels, EUR/JPY could find immediate resistances at 140.52 (Sept 18 high), 141.00 (psychological level) and 141.21 (Oct 19 high). On the other hand, supports are seen at 139.16 (10-hour SMA), 139.03/00 (200-day SMA/psychological level) and 138.78 (Oct 1 high).

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