The cross struggles to extend its recent upside move, as support for the Japanese Yen (JPY) from domestic factors offsets relatively favorable economic data from the Eurozone. The Japanese Yen finds support from growing speculation that Japanese authorities could intervene to curb further currency weakness. On the European side, the Euro (EUR) draws support from better-than-expected confidence indicators in January. The Economic Sentiment Index rises to 99.4 from 97.2 in December, while Industrial and Services Confidence also improve. In the near term, investors’ attention also turns to Japanese inflation data.