EUR/JPY is currently in a non-volatile bearish impulsive structure after the break below 121.10. Today the eurozone posted mixed economic reports but EUR failed to gain ground against JPY. Today Japan released Prelim Machine Tools Orders which showed a notable increase in the figure to 22.6 which previously was at 9.1% only. On the EUR side, German ZEW Sentiment report was published at 19.5 which was expected to be at 13.2, Industrial Production report was negative at -0.3% which was expected to be at 0.2%. Besides, ZEW Economic Sentiment report was also positive at 26.3 which was expected to be at 25.0. With the greater amount of gain of the JPY Prelim Machine Tools report, JPY has gained good strength against EUR and expected to keep momentum till the daily close.
Now let us look at the technical view, price has broken below 118.20. As the bullish rejection and impulsive bearish pressure is observed in the market till now, the price is expected to move down towards 116.25 in the coming days. If the price rejects off the 116.25 support level, then we may see a bullish move towards 118.20 again. On the other hand, if the price breaks below 116.25 with a daily close, then we will be expecting much downward move towards 112.50.
