EUR/JPY trades lower in Tokyo

• EUR/JPY drops following Tokyo open

• JPY retail trade data positive, employment figures disappoint

EUR/JPY fell to ¥134.35 before bouncing to consolidate around ¥134.90; price is currently drifting lower as Tokyo opens to mixed Japanese data, crossing below ¥134.80.

Japanese unemployment failed to meet analyst expectations, growing to 2.8% instead of remaining flat at 2.7%. Annual household spending for the period ending December also surprised to the downside, printing at -0.1% instead of holding steady at 1.7%. Various retail trade indicators came out positive, but these positive figures were already made apparent following the Bank of Japan (BoJ)'s CPI reporting from the previous week.

EUR still down following Draghi, CPI data to come

EUR/JPY fell last week following Mario Draghi's reiteration of the European Central Bank (ECB)'s commitment to lose monetary policy looking forward as Europe's central bank continues to watch for signs of improved economic growth. Eyes will be set on 4th quarter European CPI data scheduled for 10:00 pm GMT, as traders look for positive inflation figures to spur the ECB to begin tapering their purchasing programs following comments from the ECB's Klaas Knot over the weekend, who stated that the ECB's QE program must end "as soon as possible".

EUR/JPY technical levels

Swing support/resistance levels for intraday traders are priced at ¥134.35 and ¥135.25 respectively, with intraday resistance at the ¥135.00 psychological level.