EUR/JPY has been quite bearish as expected after the bullish breakout above the important event level of 134.40. Today EUR struggled to match the economic reports of JPY which lead to further weakness leading to impulsive bearish momentum in the process. Today JPY Tertiary Industry Activity report showed an increase to 1.1% from the previous value of 0.2% which was expected to be at 0.4% and PPI report showed a decrease to 3.1% from the previous value of 3.6% which was expected to be at 3.3%. Despite the opposite results of the economic reports, the Tertiary Industry Activity report had been the most impactful economic reports this week which had a brilliant effect on the gains of JPY against EUR today. On the EUR side, today German Final CPI report was published unchanged as expected at 0.6%, German WPI report was published negative at -0.3% decreasing from the previous value of 0.5% which was expected to be at 0.3%. Moreover, Federal Government Budget also showed a greater deficit of -87.4B from the previous figure of -77.1B which helped JPY to gain further momentum in the process. As of the current scenario, JPY is expected to gain further momentum in the coming days before EUR takes on the long-term bullish pressure with the higher target area.
Now let us look at the technical view, the price is currently showing some impulsive bearish pressure with some bullish rejection today. The price is expected to retest 134.40 support level in the coming days before showing any bullish pressure with the target towards 140.00 resistance area. As the price remains above 134.40 the bullish bias is expected to continue further.
