EUR/JPY has been quite bearish recently after bouncing off the resistance area of 134.40. EUR has been quite mixed with the economic reports today which lead the currency to lose some grounds against JPY. Today EUR Spanish Services PMI report was published with decreased figure of 54.4 from the previous figure of 54.6 which was expected to be at 55.2, Italian Services PMI report was published with an increase to 54.7 from the previous figure of 52.1 which was expected to be at 53.4, French Final Services PMI report has also shown increase to 60.4 which was expected to be unchanged at 60.2, German Final Services PMI report was published with decrease to 54.3 which was expected to be unchanged at 54.9 and Final Services PMI report was published as expected at 56.2. Additionally, EUR Retail Sales report was published with greater deficit at -1.1% from the previous value of 0.8% which was expected to be at -0.6% and ECOFIN Meeting did not have much impact on the market having a neutral view about the upcoming economic developments in the Eurozone. On the JPY side, today BOJ Core CPI report was published unchanged as expected at 0.5%, which did not quite help the currency to gain good momentum in the early stage of the day but due to worse economic reports of EUR published afterward, the JPY gained momentum. The bearish pressure does indicate the weakness of EUR against JPY which is expected to help in the further momentum of JPY in the coming days.
Now let us look at the technical view, the price is residing inside the range between 131.40 to 134.40 area for a couple of days by now. The resistance area of 134.40 has been quite successful several times for pushing the price lower towards the support area of 131.40. As the price remains below 134.40 with a daily close it is expected that the price will again head towards 131.40 support area in the coming days.
