EUR/JPY is currently in a state of clear bearish rejection after a massive sell off below 120.00. EUR is gaining strength against the JPY today after the final Japan's GDP came in at 0.3%, slightly missing the forecast of a 0.4% growth. Besides, Japan's current account showed deficit of 1.26 trln yen, which was expected to be at 1.46 trln yen. On the other hand, German industrial production saw a robust increase of 2.8% in January from a 3.0% fall in December. French Trade Balance was quite negative at -7.9 bln EUR, much worse than the forecast of -3.7 bln EUR. Despite mixed economics reports from the eurozone, EUR is gaining momentum against JPY. If the market shows a daily close with bullish intervention in this pair, the price is likely to climb higher in the future.
Now let us look at the technical view. The price is currently rejecting the bears and is hovering above the support at 120.30. If we see the daily close above the support level 120.30, the price is expected to move towards the next resistance at 121.20 soon. Otherwise, if the price closes with a bearish pressure below 120.00 area, the bullish bias will change to bearish and we will target 119.40 on the downside.
