EUR has been gaining very impulsively over JPY recently and the gain seems to continue further in the coming days. Due to recent bad economic reports, JPY has failed to show any gain over EUR which resulted to further bullish move in this pair without any retracement along the way. Yesterday JPY Bank Lending report showed a slight growth to 3.3% from previous value of 3.2%, Core Machinery Orders report showed a decrease to -3.6% from previous value of -3.1% which is expected to increase to 1.7%, Current Account report was published with a decreased figure of 1.40T from previous value of 1.81T which was expected to be at 1.63T and Economic Watchers Sentiment showed an increase to 50.0 from previous value of 48.6 which was expected to be at 49.0. Today JPY had M2 Money Stock report which showed an increase to 3.9% from the previous value of 3.8% and Prelim Machine Tool Orders also showed an increase to 31.1% from the previous value of 24.5%. On the EUR side, today we have Italian Industrial Production report is expected to show a growth to 0.5% from previous value of -0.4%. To sum up, due to bad economic reports JPY has been losing grounds against EUR recently which is expected to continue further as despite the positive JPY reports today JPY is still not showing any remarkable gain which signals to further gain on the EUR in the coming days.
Now let us look at the technical view, the price has been quite impulsive and non-volatile on the gains after the break above the 125.80 resistance level and proceeding towards 132.20 resistance level. As the price remains above the dynamic level of 20 EMA the bullish bias is expected to continue with a recent target towards 132.20 resistance level.
