EUR/JPY is currently residing at the edge of 132.00 price area from where it is expected to proceed higher in the coming days. Ahead of the upcoming ECB events to be held this week, EUR is quite impulsive with its gains whereas certain struggles are still in the market. Today JPY Prelim Machine Tool Orders report was published with a decrease to 28.1% from the previous value of 39.5% which did cause EUR the needed push to sustain its recent gains against JPY. On the EUR side, today French Industrial Production report is going to be published which is expected to increase to 1.5% from the previous value of -2.0% and Italian Industrial Production report is also expected to increase to 1.0% from the previous value of -1.9%. As of the current scenario, EUR is quite optimistic with the economic reports ahead of the upcoming high impact economic events to be held this week, whereas JPY is expected to struggle with the mixed economic reports throughout the week as of the expectations from speculators. To sum up, EUR is expected to extend its gains in the coming days over JPY which is expected to lead to further bullish pressure on the pair.
Now let us look at the technical view. The price is currently residing at the edge of 132.00 whereas a daily close this area will lead to further impulsive bullish pressure in the pair. The price has been supported by the dynamic level of 20 EMA during the breakout which did inject confluence along the process. As the price remains above 131.00 price area, the bullish bias is expected to continue further in the coming days.
