EUR/JPY has been impulsive and non-volatile amid bearish pressure which led the price to reside at the edge of 129.50 support area with a daily close. ON the back of positive reports from the eurozone, EUR managed to push the price higher today but could not sustain the momentum it had throughout the day.
Today French Industrial Production report was published better than expected at 0.3% from a 0.8% decrease in the previous month but better than expectation of 0.1% and Italian Industrial Production increased to 1.7% from the previous value of -1.6% which was expected to be at 0.7%. Ahead of the French and German CPI, such positive economic reports are expected to provide the required momentum for EUR in the coming days.
On the other hand, Japan released mixed economic reports today did not quite manage to sustain the pressure it had over EUR recently. Today Japan's Core Machinery Orders report was published with a decrease to 6.8% from the previous value of 11.0% but managed to remain better than expectation of -3.9% and Prime Machine Tools Orders decreased to 2.8% from the previous value of 5.1%.
Meanwhile, EUR has been quite strong fundamentally ahead of CPI reports this week, whereas JPY having soft expectations of the upcoming reports may lead the market sentiment to derive away from the currency in the coming days. To sum up, EUR is expected to gain further momentum over JPY in the coming days if the upcoming reports remain consistently better.
Now let us look at the technical view. The price has been quite impressive with the bullish gains today which did not quite sustain at the momentum it had throughout the day. The price is currently expected to push higher upon another retest at 129.50. As the price remains above 129.50 with a daily close on the long-term basis, the price is expected to push higher towards 131.00-132.00 resistance area. On the other hand, if the price breaks below 129.50 area with a daily close, further bearish momentum is expected which might lead to 125.60 price area.
SUPPORT: 125.60, 129.50
RESISTANCE: 131.00, 132.00
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