EUR/JPY sliding lower heading into Europe after losing 132.00 handle

• The EUR/JPY is on the low side ahead of European markets.
• German CPI, Powell testimony to impact markets later.

The EUR/JPY is trading on the low side of the Asia session heading into European markets, the pair falling back into 131.65 after reaching a high of 132.07.

The Eurozone sees a swath of data today, but the primary focus will be German preliminary CPI due at 13:00 GMT. Market forecasts are expecting a slight contraction in the headline figure, anticipating a reading of 1.3% versus the previous 1.4%.

Market-wide volatility can expect a spike later today when new Fed chair Jerome Powell gives his testimony before Congress today. Markets will be watching Powell's words carefully for hints about where the Fed is heading, especially as this marks chairman Powell's first major appearance since taking over the post from Janet Yellen. Powell is slated to begin testifying at 15:00, but the text of his statements will be available earlier, at 13:30.

EUR/JPY Technicals

The pair has deflated significantly since the beginning of February, falling from a high of 137.50. the EUR/JPY seems to have found a floor off the 200-day SMA, but H4 charts show plenty of bearish pressure still in play. Support is thin at 130.93, while resistance is packed in from 132.10 to the 133.00 handle.