EUR/JPY slides closer to session lows, around mid-133.00s after German IFO

Having posted a session high near the 134.25 region, the EUR/JPY cross ran through some fresh offers and has now drifted to the lower end of daily trading range. 

Against the backdrop of political landscape in the Euro-zone’s largest economy, where in Merkel's Conservatives (CDU) Party now needs to work to form a new coalition the latest disappointing German IFO business survey readings exerted some fresh pressure on the shared currency. 

Meanwhile, political uncertainty over the prospect of a snap election in Japan kept the Japanese Yen on the back-foot and helped limit deep losses, at least for the time being.

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Moving ahead, investors now look forward to the Japanese PM Shinzō Abe's anticipated news conference at 0900GMT for some fresh impetus.

This coupled with the ECB President Mario Draghi's testimony before the European Parliament Economic and Monetary Affairs Committee might assist the cross to break out of its five-day old trading range. 

Technical levels to watch

Subsequent retracement below mid-133.00s is likely to find support near 133.30-25 area, which if broken could drag the cross below the 133.00 handle towards its next support near the 132.40-35 region.

On the upside, bulls would be eyeing for a sustained move beyond the 134.00 handle, above which the cross is likely to aim towards surpassing the 134.20-25 intermediate hurdle and head towards testing Nov. 2016 swing high resistance near the 134.60 region.