The EUR/JPY pair has been rejecting buyers from the beginning of the week and currently it is below the resistance level 120.55. Today German Prelim GDP report was released. It came out as 0.4% which was expected to be 0.5%, at the same time Italian Prelim GDP report was also 0.2% which was expected to be 0.3%. Among the European nations, German and Spanish Prelim GDP signaled the weakness of EUR fundamentally which helped JPY to gain some strength over EUR today. Though JPY is also influenced some bad economic data previously. If JPY can keep EUR below the psychological resistance level of 120.55, today it is expected that EUR can see more downward movement or else EUR can gain strength against JPY.
Now let us look at the technical view, the price is currently showing indecision below the resistance area between 120.55-85 where JPY is struggling to take the price lower. This is a clear sign of the presence of EUR bulls who are trying to push the price higher. If the price reaches and breaks above the 120.85 level, it is expected that EUR will gain strength again against JPY. On the other hand, if the price breaks below 120 it is expected that price will go more down towards 119.25-30 level.
