EUR/JPY has been trading with the bullish trajectory. The upward momentum led the price to reside around the resistance area of 131.50-132.00 from where it is expected to push lower in the coming days. EUR has managed to gain momentum despite recent mixed economic reports which subdued impulsive bullish pressure in the market.
Recently, Italy's Trade Balance report was published with an increase to 3.38B from the previous figure of 2.99B which was expected to be at 3.25B and the euro area's trade balance report was published with a decrease to 16.9B from the previous figure of 18.0B which was expected to be at 17.6B. Ahead of the CPI report tomorrow which is expected to be unchanged at 2.0%, EUR is expected to trade roughly flat.
On the other hand, amid the celebration of Marine Day recently, Japan did not release any economic reports and hold any events today. On Thursday, Japan's Trade Balance report is going to be published which is expected to increase to 0.15T from the previous figure of -0.30T. On Friday, National Core CPI report is going to be published which is also expected to increase to 0.8% from the previous value of 0.7%.
At present, EUR gains are waning gradually against JPY. Any positive economic report from Japan or worse-than-expected report from the eurozone may arouse momentum in JPY, resulting in further bearish pressure in EUR/JPY in the coming days.
Now let us look at the technical view. The price has formed Bearish Divergence, while the price is residing inside the resistance area of 131.50-132.00 with a daily close. Currently, a bearish daily close is expected in the market before the price declines lower in the coming days. A daily close below 131.50 area will lead to further bearish momentum with a target towards 129.50 and later towards 125.00 support area in the future.
