EUR/JPY has been impulsively bearish recently and the price fell from 134.00 to 132.00. Currently, the price is residing at the edge of 132, which is expected to show further bearish move towards 130.00 in the coming days. Today Japan's CSPI report was published with an increase of 0.8%in comparison with the previous value of 0.6% and expectations of 0.7%; the BOJ Monetary Policy Meeting Minutes revealed positive future policies, including an increase in productivity by boosting corporate investments, which led to further gains in JPY against EUR today. On the EUR side, today the German Import prices showed zero change from the previous 0.4% drop missing the expectation of 0.1%. The worse-than-expected report from Germany supported JPY, leading to weakness in EUR. As of the current market scenario, JPY is expected to move further downwards against EUR until EUR comes up with significant positive economic reports or events to counter with bullish move in the coming days.
Now let us look at the technical view. The price is currently residing at the edge of the 132.00 support level which is also an event level that is expected to show further directional movement in this pair. The price is currently being held by the dynamic level of 20 EMA as well. As the price remains above the 132.00 support level and the dynamic level of 20 EMA, it is expected to show a bullish movement towards the 134.30 resistance level. On the other hand, if the price breaks below the 132.00 support level, it will also lead to a break below the dynamic level of 20 EMA as well as result in bearish pressure on the 130.60 support level.
