EUR/JPY has been quite volatile recently since the NFP report hit the market on Friday. The pair has shown equal amount of pressure from the bullish and bearish participants of the market, but bulls took charge with steady gains in the market. Today, German Trade Balance report was published with an increase to 21.6B from the previous figure of 19.3B which was expected to be at 19.8B, French Industrial Production report was published with a negative value of -0.3%, worse than the previous value of 0.8% which was expected to be at 0.4%, Italian Industrial Production report is yet to be published which is expected to be unchanged at 0.1%, and later ECOFIN Meeting is expected to take place which is expected to be quite neutral in nature. On the JPY side, today Current Account report showed a significant increase to 2.27T from the previous figure of 2.03T which is expected to be at 1.98T and Economic Watchers Sentiment was also positive with an increase to 51.3 from the previous figure of 49.7 which was expected to have a slight increase to 49.9. To sum up, EUR has been quite mixed in light of the economic reports which capped the recent gains of EUR against JPY. Japan's economic reports today had positive outcome that is expected to help JPY gain further against EUR in the coming days.
Now let us look at the technical chart. The price is currently being rejected off the rising channel as resistance which the price has already responded with a bullish rejection earlier. Before the price came into the rising channel, the pressure was significantly bearish. Judging by the basic trend continuation theory, the price is expected to trade under bearish pressure. As the price remains below 133 resistance area, the bearish bias is expected to continue further.
