EUR/JPY has been rejected off the 123.50 support level, so a bullish move is expected if the price remains above the support level with a daily close. Today, Japan released mixed economic reports. The Household Spending report was negative at -1.4% which was expected to be at -0.7%, the Unemployment Rate was unchanged as expected at 2.8%, Retail Sales report was positive at 3.2%, much stronger than expectations for a 2.2% gain. Eventually, BOJ Core CPI was also positive at 0.2% which previously was at -0.1%. On the EUR side today, the eurozone also presented mixed reports. German Import Prices were negative at -0.1% instead of the 0.2% expected rise, French Consumer Spending came in at 0.5%, worse than the expected 0.8% gain, French Prelim GDP was positive at 0.4%, stronger than the forecast for a 0.3% growth, and Spanish Flash CPI came in at 1.9%, down than the forecast for a 2.1% increase. Overall, both Japan and the eurozone showed mixed economic data which did bring some volatility in the market but could not provide clues about a further dynamic of any currency in the pair. Currently, EUR is quite stronger than JPY fundamentally, so EUR is expected to advance further in the coming days.
Now let us look at the technical view, price is currently retesting the 123.50 support level with a rejection off the 20 EMA as well. Currently, the pair is trading in a bullish non-volatile trend which is expected to proceed further up towards 125.80-126.00 resistance area. As the price remains above 123.50, we will be in a bullish bias. If the price breaks below 123.50 with a daily close, then we will be looking forward to sell with a downward target towards 121.10 support level.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
EUR/JPY has been rejected off the 123.50 support level, so a bullish move is expected if the price remains above the support level with a daily close. Today, Japan released mixed economic reports. The Household Spending report was negative at -1.4% which was expected to be at -0.7%, the Unemployment Rate was unchanged as expected at 2.8%, Retail Sales report was positive at 3.2%, much stronger than expectations for a 2.2% gain. Eventually, BOJ Core CPI was also positive at 0.2% which previously was at -0.1%. On the EUR side today, the eurozone also presented mixed reports. German Import Prices were negative at -0.1% instead of the 0.2% expected rise, French Consumer Spending came in at 0.5%, worse than the expected 0.8% gain, French Prelim GDP was positive at 0.4%, stronger than the forecast for a 0.3% growth, and Spanish Flash CPI came in at 1.9%, down than the forecast for a 2.1% increase. Overall, both Japan and the eurozone showed mixed economic data which did bring some volatility in the market but could not provide clues about a further dynamic of any currency in the pair. Currently, EUR is quite stronger than JPY fundamentally, so EUR is expected to advance further in the coming days.
Now let us look at the technical view, price is currently retesting the 123.50 support level with a rejection off the 20 EMA as well. Currently, the pair is trading in a bullish non-volatile trend which is expected to proceed further up towards 125.80-126.00 resistance area. As the price remains above 123.50, we will be in a bullish bias. If the price breaks below 123.50 with a daily close, then we will be looking forward to sell with a downward target towards 121.10 support level.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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