EUR/JPY trying for 133.00 as EU CPIs loom

• The Euro is scaling higher as the Yen recedes on bullish markets through Asia.
• EU CPI ahead could knock the EUR back into lows if final figures fail to meet expectations.

The EUR/JPY is extending the rally started in the late Tuesday session, trading into 132.90 ahead of the European markets.

The safe haven Yen is scaling back its strong stance as broader markets go risk-on, and the Euro is climbing to recapture the ground that was lost in the early week's action. The pair is now back into the week's highs, but Eurozone CPIs could derail the Euro if forecasts prove too much for the headline figures to keep up with.

The year-on-year EU CPI for March is forecast at 1.4 percent, in-line with the previous reading, while year-on-year Core CPI for the same period is expected at 1.0 percent, also matching the previous reading. These are final CPI numbers, so any deviation is likely to be limited, but a miss on the expectations could easily knock the Euro back down as confidence is thinning in the Eurozone.

EUR/JPY Levels to watch

The pair is trading into resistance at the month's highs near the 133.00 major handle, with further resistance at February's open price at 153.50, while support for a bearish correction sits at the 200-day SMA near 132.20, with further support from April's open at 130.80.