After the French Election Round 1 in the weekend, EUR/JPY started the week with a GAP of 390 pips. Though the price showed some bearish movement yesterday falling back to 119.25, today the bulls are trying to take over again. Today, despite having the Italian Bank Holiday due to the observance of the liberation day, EUR is stronger than JPY. On EUR side, Belgian NBB Business Climate report is going to be published later today which is expected to be at -1.4 which previously was at -1.6. If the news comes positive today, EUR is likely to gain more strength in the coming days. On the other side, Japan's SPPI report was published today which was better than expected at 0.8% instead of 0.7%. Nevertheless, JPY could not gain ground against the EUR pressure today. Overall, EUR is expected to climb much higher against JPY in the short term.
Now let us consider he technical view. The price is currently residing in the mid-range of 118.20 to 121.10. If the price breaks above 121.10 with a daily close, then we will be planning buy positions with an upward target of 123.50 resistance level. Otherwise, if the price breaks below 118.20 with a daily close, then we will consider sell positions with a downward target towards 116.20 support level. Currently it would be better to be on the sidelines for this pair until the range is broken with a daily close on either side.
