EUR/JPY: Japanese Yen picks up strength on hot Tokyo CPI

EUR/JPY cross erased gains to trade below 163.00 mark as Japanese Yen strengthened on elevated Tokyo CPI. Core CPI rose 2.4% YOY in the month of March, remaining above Bank of Japan's 2% target for the fifth consecutive month which corroborated BOJ's hawkish monetary policy stance. At the same time, Euro remained under pressure due to escalating trade tensions between the Eurozone and the USA. The EU is preparing retaliatory tariffs in response to the 25% auto tariff levied by President Donald Trump which is scheduled to be implemented on 2nd of April. 

EUR/JPY TECHNICAL OUTLOOK 

EUR/JPY shows signs of weakness on the daily chart even after trading above the 20SMA . A Shooting Star formed after a short term uptrend on the 4H chart and a Double Bottom in formation suggest downside risks. Intraday outlook remains bearish despite the primary uptrend, favouring selling on support breakdowns and selling on rise. Key support levels to watch are 161.30, 160.75, and 160.00 while resistance levels stand at 163.35, 164.20, and 165.00.