EUR/JPY has been impulsively bullish recently after bouncing off the 131.70-132.50 support area. EUR has been quite dominant over JPY recently due to positive economic reports from the Eurozone and hawkish statements from the ECB which helped the currency to maintain gains. European economic reports were quite mixed this week but they helped the currency to have stable bullish momentum in the pair. Today the German IFO Business Climate report was published with an increase to 116.7 which was expected to be unchanged at 115.2. The positive economic report helped EUR to extend the impulsive bullish momentum and push the price higher. On the other hand, Japan has been quite negative with the economic reports including the Flash Manufacturing PMI showing a decrease to 52.5 from the previous figure of 52.9 which was expected to increase to 53.1. Besides, on Friday the National Core CPI report is going to be published which is expected to be unchanged at 0.7%. The Tokyo Core CPI report is also expected to be unchanged at 0.5%. To sum up, EUR has been quite stable with the economic reports but JPY is quite weaker as JPY has been losing some grounds against EUR recently. As of the current situation, EUR is expected to gain good momentum in the coming days because on Thursday the ECB Press Conference is going to be held along with the Minimum Bid Rate report which is expected to be unchanged at 0.0%. The high-impact economic events are expected to inject good amount of volatility in the market whereas EUR is expected to have an upper hand over JPY in the coming days.
Now let us look at the technical view. The pair is currently residing at the edge of the resistance area of 134.50. The price is also hovering above the dynamic level of 20 EMA which is acting as a support to push the price higher in the coming days. If it breaks above 134.50 resistance area with a daily close, then we will be looking forward to buy with a target towards 137.50 in the future. As the price remains above 132 support area, the bullish bias is expected to continue further.
