EUR/JPY slips past ¥134.50 during Tokyo, EZ GDP on the cards

• Yen gains during risk-off market session.

• EZ data could hinder current movement, send EUR/JPY back up.

The Yen continues to be the leader of the currency blocs, with EUR/JPY pushing lower through Asia, falling to ¥134.50 with a target on yesterday's New York low of ¥134.33.

Dropping global equity markets and market eagerness for a reduction of Bank of Japan easing measures on the back of positive economic data has pushed the Yen higher in Asia trading, as risk-averse Yen bulls flock back to safety during a global equities pullback. Despite constant reminders from the Bank of Japan's Governor Kuroda that tapering is a long way off pending economic improvements, traders jostle for position to be aboard the Yen when easing does finally occur.

Major economic indicators for the Eurozone are due in the London market session, most notable EZ preliminary 4th quarter GDP figures at 10 am GMT, followed by annual data for German CPI. As the Eurozone's single largest economy, German economic activity is a major contributor to the economic health of the overall Eurozone, and acts as an indicator for inflation within the region, especially as the European Central Bank prepares to begin winding down their own easing program with targets set sometime in 2018. The Euro has spent much of the passed ten months gaining steadily over the Yen on the back of bullish confidence for the Eurozone coupled with quickly evaporating confidence in the strength of the US Dollar under Donald Trump's presidency.

EUR/JPY technicals

EUR/JPY continues to break lower with the nearest swing support coming from yesterday's market low, ¥134.33. Depending on risk appetite from EZ GDP/CPI data, the Euro could give way under Yen pressure and sink to fresh two-month lows, marked by the recent higher low at ¥133.05; on the Yen-bearish side, Euro-positive data could send EUR/JPY back into the Asia session range, with resistance priced in at the ¥135.00 psychological handle.