EURJPY has been quite impulsive with the recent bearish momentum which lead the price to reside below 125.00 support area. EURO having certain issues like German Strike and European shares starting with the year 2019 with deep in red did lead the currency to lose significant momentum against JPY recently.
Japan observing 4 days of Bank Holiday recently gained momentum against EURO, whereas JPY is expected to continue the pressure further in the coming days. Though JPY has been struggling with certain economic reports and events earlier, but it managed to gain sustainable momentum over EURO in the process.
On the EURO side, German's largest union called a nationwide strike on Tuesday due to unsuccessful wage talks recently. The strike is expected to continue till Friday until a favorable negotiation is considered by the union. As the strike is being done by the drivers of cash transports in the country, it is expected to affect the gains of EURO in the coming days. Moreover, today Spanish Manufacturing PMI report was published with decrease to 51.1 from the previous figure of 52.6 which was expected to be at 52.4, Italian Manufacturing PMI increased to 49.2 from the previous figure of 48.6 which was expected to decrease to 48.5, French Final Manufacturing PMI was published unchanged as expected at 49.7 and German Final Manufacturing PMI was also published unchanged at 51.5.
As of the current scenario, EURO has been quite mixed with the economic reports today while having high impact event in Germany which lead to further losing of grounds against JPY in the process. Though JPY is still quite silent as of the observation of holiday, but any positive economic results is expected to lead to further gains on the JPY side in the future.
Now let us look at the technical view. The price is currently quite impulsive with the bearish pressure which took the price quite far from the mean average of 20 EMA in the process. As of the current scenario, the price is expected to push higher towards 125.50-126.50 area where the dynamic level of 20 EMA resides and from there if any bullish rejection or bearish momentum observed is expected to lead to continuation of the trend in the coming days. As the price remains below 130.00 area with a daily close, the bearish bias is expected to continue with target towards 123.50 and later towards 120.00
SUPPORT: 120.00-50, 122.00, 123.00-50
RESISTANCE: 125.00, 125.50, 126.00, 127.50
BIAS: BEARISH
MOMENTUM: NON-VOLATILE and IMPULSIVE
