EUR/JPY had a good amount of bullish pressure on the back of the French Election recently. Recently, EUR has totally dominated JPY in every possible way and has created a higher high above the resistance of 123.50. Today in the eurozone, Germany's Industrial Production was released which was positive at -0.4% instead of the expected fall to -0.6%. German Trade Balance was published with a decreased figure at 19.6B which was expected to be at 21.2B. Italian Retail Sales report was also published with a decreased figure at 0.0% which was expected to be at 0.2%. After the French election, French Government Budget Balance report was published today which was negative at -29.6B which previously was at -21.5B. On the other hand, Japan's Average Cash Earnings report was published with a negative figure at -0.4% which was expected to be unchanged at 0.4%. Overall, EUR seemed to have a greater advantage over JPY in light of today's economic reports but if tomorrow's BOJ Summary of Opinions report comes positive for JPY, then we might see a different picture where JPY might gain some grounds over EUR.
Now let us look at the technical chart. The price has already rejected bears off the 123.50 level yesterday. Currently the price is over the 123.50 level. If we see a daily close above that level today we will be looking forward to buy with a target towards 125.00 onwards. On the other hand, if the price closes below 123.50 with a daily close, then we will be looking forward to sell with a target towards 121.10 support level.
