EUR/JPY has been struggling to break the 130.60 resistance level recently which signals massive volatility and bullish counter pressure in the market as well. EUR has been much stronger recently which has led to a non-volatile bullish trend since April. Now it seems like getting a pause after JPY is on the way to its gains. Today, the Bank Lending report was published in Japan which was unchanged at 3.3% and the Current Account has shown a significant rise to 1.52T from the previous value of 1.40 which was expected to be at 1.51T. On the other hand, today Germany published the trade balance report with an increase to 21.2B from the previous value of 20.3B which was expected to be at 20.8B. Besides, the French Government unveiled the Budget Balance which showed less deficit to -62.3B versus the previous -66.4B. Furthermore, the French Trade Balance was published with better than expected value at -4.7B which was expected to be at -5.1B. Thus, both the Eurozone and Japan presented some positive economic reports today which is expected to lead to further correction in this pair. However, JPY is expected to have an upper hand over EUR by its progress signaled by the BOJ recently about the inflation and monetary policies to be taken in action.
Now let us look at the technical view. The price is currently struggling at the edge of 130.60 which signals that the recent bullish break was false. As the price is currently showing some bullish rejection and impulsive bearish momentum, it signals that bears are quite stronger in pulling the price down towards the 128.50 support level. As the price remains below 131.00, the bearish bias is expected to continue further in this pair.
