EUR/JPY has been quite indecisive and volatile recently after reaching 131.50 resistance area from where it is currently expected to push lower. Despite disappointing economic data from Japan today ahead of more macroeconomic reports later this week, JPY gained impulsive momentum over EUR which is indeed quite remarkable. EUR has been struggling amid mixed economic reports. Ahead of the BOJ Policy Rate decision sudden impulsive bearish pressure in the pair explains something interesting. Today, Japan's Leading Indicators report was published with a decrease to 104.8% from the previous value of 107.4% which was expected to be at 106.5%. Moreover, on Friday, BOJ Policy Rate report is going to be published. The key policy rate is widely expected to be unchanged at -0.10%. Besides, the Monetary Policy Statement and Press Conference are expected to be quite neutral with its impact. On the EUR side, today French Trade Balance report is going to be published which is expected to show a wider deficit of -4.4B from the previous deficit of -3.5B and Revised GDP is expected to be unchanged at 0.6%. As for the current scenario, there are no positive forecasts for the eurozone's economic conditions this week, whereas high impact economic reports from Japan may lead to volatility and the market bias on the JPY side, leading to further bearish pressure in the pair for a while. To sum up, JPY is expected to have an upper hand over EUR in the short term.
Now let us look at the technical view. The price is currently residing below 131.50 price area having a good amount of volatility in the market recently. The price has violated the 131.50 price area for a several times and currently expected to push lower towards 129.50 support area. As the price remains below 131.50, the bearish bias is expected to continue further.
