EUR/JPY is still residing inside the corrective range of 131.40 to 134.40 area which is currently expected to break on the upside in the coming days as per the formed structure. Recently EUR has been quite positive with the economic reports and events with hawkish results which helped the currency to gain momentum in the market which is expected to continue further in the coming days. Today, EUR French Final CPI report was published unchanged as expected at 0.1% and Trade Balance report showed significant growth to 25.0B from the previous figure of 21.0B which was expected to be at 21.2B. On the other hand, JPY had been quite mixed with the economic reports today which did not quite help the currency to put pressure against the recently impulsive EUR gains. Today, JPY Prelim GDP report was published with decreased value at 0.3% from the previous value of 0.6% which was expected to be at 0.4%, Prelim GDP Index report was published as expected at 0.1% which previously was negative at -0.4% and Revised Industrial Production report was published with less deficit at -1.0% which was expected to be unchanged at -1.1%. As of the current scenario, EUR has not been quite impulsive till now with positive economic reports published today whereas JPY could not quite dominate either but was quite successful to hold the EUR gains to certain extent. In the coming days, it is expected that EUR will gain further over JPY based on long-term growth policies discussed in the ECB events, which will lead to steady gains for the currency in the future.
Now let us look at the technical view, the price is currently residing above the support level of 131.40and dynamic level of 20 EMA as well. The trend has been bullish since April 2017 which is expected to continue further in the coming days after the price breaks above the 134.40 resistance area. As the price remains above 131.40 support area the bullish bias is expected to continue further.
