EUR/JPY extends the consolidation around 120.00 ahead of key data

• EUR/JPY navigates within a sidelined note around 120.00.
• German flash CPI next of relevance in the docket.
• US advanced Q4 GDP takes centre stage later in the session.

Alternating risk appetite trends are motivating EUR/JPY to extend the consolidative mood around the 120.00 mark for yet another session on Thursday.

EUR/JPY looks to coronavirus, German/US data

After bottoming out in the 119.80, or yearly lows, the cross has managed to retake the key barrier at 120.00 the figure and is now looking to consolidate around those levels. The daily recovery in the European currency stays underpinned by the dovish message from the FOMC at Wednesday's meeting, which seems to have forced the buck to ease some ground following recent YTD peaks.

In the meantime, latest news cites the death toll from the Wuhan coronavirus keeps rising, lending extra legs to the demand for the safe havens and thus keeping the cross under almost permanent pressure.

Moving forward, the euro is expected to remain under the microscope in light of the publication of advanced German inflation figures for the current month. Still in Germany, earlier labor market figures came in on the strong side, showing the jobless rate stayed unchanged at 5.0% and the unemployment decreased more than expected, both prints for the month of January.

In the US docket, and with the FOMC meeting already in the past, investors will focus on the preliminary figures for the GDP during the October-December period, seconded in relevance by the usual weekly Claims.

In addition, the BoE will decide on the key interest rate later in the day, which could bring some extra volatility to the pound and the rest of the riskier assets.

EUR/JPY relevant levels

At the moment the cross is losing 0.04% at 119.97 and a breach of 119.79 (2020 low Jan.30) would aim for 119.65 (low Nov.25 2019) and then 119.24 (monthly low Nov.14 2019). On the other hand, the initial up barrier is located at 120.42 (weekly high Jan.29) followed by 120.70 (200-day SMA) and then 121.93 (55-day SMA).