EUR/JPY: Euro is trading lower as Yen rocks the data light session

• The Bank of Japan Governor Kuroda said easy monetary policy won’t be revisited in the fiscal year 2018.
• The macro news from Germany and the Eurozone came out mixed.

 
The EUR/JPY is trading down 0.4% at around 129.70 amid inflation news and the Bank of Japan Governor Kuroda comments.
 
Mr. Kuroda, the Bank of Japan Governor, crossed the wires overnight saying that the Bank of Japan will be considering policy exit around spring of 2019 indicating not to expect the BoJ to debate exit from easing policy during the fiscal year 2018. He went further confirming the BoJ will continue to expand monetary base until inflation stabilizes. Kuroda’s comments did not weaken the Japanese currency as the Yen is still trading higher against the Euro and the US Dollar on Friday.   
 
Overnight, the set of inflation numbers from Japan saw Tokyo core CPI excluding fresh food rising 0.9% over the year in February while overhead inflation rose 1.4% in Ku area of Tokyo. At the same time, Japanese unemployment unexpectedly fell to 2.4% in January.
 
Earlier in the European session on Friday, German retail sales fell -0.7% m/m while rising 2.3% y/y in real terms in January while German wholesale trade fell -1.0% y/y in December while rising 0.2% y/y in nominal terms. The Eurozone PPI decelerated to 1.6% m/m in January in line with expectations.
 
Technically the EUR/JPY has broken below its 200-period simple moving average which is considered a bearish signal. Next key support is seen at 128.80 which is the 38.2% Fibonacci retracement level from the June 2017 - July 2018 bull move. Further down the next key support is 123.50 which is the 50% Fibonacci retracement from the June 2017 - July 2018 bull move. To the upside, resistance is seen at the 131.00 figure which is the 23.6% Fibonacci retracement from the June 2017 - July 2018 bull move. Further up 133.50 should provide dynamic resistance with the 100-period moving average.

EUR/JPY daily chart