EUR/JPY - What’s next after Doji candle?

EUR/JPY ended yesterday with a Doji candle [indecision] despite the preliminary upbeat Eurozone CPI release. The currency pair clocked a high/low of 131.59/130.70 before ending the day at 130.95. 

The main event of the day is the US non-farm payrolls release and wage data release. Strong wage price inflation could lift the USD. Yen being extremely sensitive to the uptick in the Treasury yields, could take a hit, while the overbought EUR could suffer sharp losses as well.  

On the other hand, EUR/JPY could cheer weaker US data as it could yield broad based USD weakness, coupled with the rally in the risk assets [bearish for JPY]. 

EUR/JPY Technical Levels

The cross is hovering around 131.00 levels this Friday morning in Asia. A sustained break above 131.04 [5-DMA] would open up upside towards 131.71 [Aug 30 high]. The next major hurdle is seen at 132.24 [resistance offered by the trend line sloping upwards from the Apr 17 low and June 15 low]. 

On the downside, breach of support at 130.89 [daily low] could yield a sell-off to 130.40 [Aug 16 high] and 130.08 [10-DMA].