EUR/JPY is currently residing inside a corrective structural range between 128.50 to 130.70 area. Euro has been quite dominating over Yen for last few months which is expected to come to a counter move in coming days. Due to hawkish comments on the ECB Conferences and bad economic reports on JPY the currency pair has gained quite a good momentum on the bullish side. Today Euro German Import Prices report was published with worst value at -1.1% from previous value at 1.0% which was expected to show less deficit to -0.7%, German Ifo Business Climate report showed an increase to 116.0 from the previous value at 115.2 which was expected to decrease to 114.9 and Belgian NBB Business Climate showed less deficit to -1.5 from the previous value of -2.0 which was expected to be at -1.9%. On the JPY side, today BOJ Monetary Policy Meeting Minutes were held where the future policies are hinted to be on hold without any future upgradation which affected the growth of the JPY gains today. Though Euro had mixed economic reports today and JPY had a negative sentiment on the market, EUR could not quite gain on the JPY as it was expected to be. The price is still in range and any positive JPY economic report could drive the price much downward in the coming days.
Now let us look at the technical view, the price is currently showing some bullish rejection inside the range of 128.50 to 130.70 area. As the price is currently above the 20 EMA and support level of 128.50 the range is expected to continue but if the price breaks below 128.50 with a daily close then the bias will be bearish with a target towards 125.80 support level in the coming days. On the other hand, if the price breaks above 130.70 with a daily close further bullish pressure is expected in this pair with an upward target towards 132.25.
