EUR/JPY has been impulsive and non-volatile with the recent bullish gains which led the price above 129.50 area with a daily close recently. On the back of the escalating trade war and Brexit tensions, EUR has been consistently dominating currency against JPY which is expected to lead to further upward momentum in the coming days.
Despite a mixed dynamic, EUR has been quite stable in light of recent economic reports which helped the currency to gain sustainable momentum over JPY while it was battered by sour reports. Today the eurozone's M3 Money Supply report was published with a decrease to 4.0% from the previous value of 4.4% which was expected to be at 4.3% and Private Loans was published with an increase as expected to 3.0% from the previous value of 2.9%.
On the JPY side, recent economic reports are mainly repsonsible for JPY delcine against EUR. As a result, EUR/JPY has been trading in the red. Today BOJ Core CPI report was published with an increase to 0.5% from the previous value of 0.4% which was expected to decrease to 0.3%. Despite the positive readings, JPY failed to gain momentum against EUR today that signals weakness of JPY compared to EUR for the time being.
Meanwhile, EURO has been trading with a mixed dynamic amid the economic reports published today, whereas positive reports from Japan did not help with the gains as expected. The impulsive bullish pressure of EURO has slackened that indicates that certain pullbacks and corrections may occur before EUR pushes the price higher against JPY in the coming days.
Now let us look at the technical view. The price is currently residing above 129.50 area from where it is expected to retrace towards 129.00-50 area before pushing higher towards 130.50 and later towards 132.00 area in the coming days. Though the price is currently quite bullish, the lower impulsive momentum is an indication of certain correction and retracement along the way before the price pushes higher in the coming days. As the price remains above 129.00 area, the bullish bias is expected to continue further.
SUPPORT: 129.00-50
RESISTANCE: 130.50, 132.00
BIAS: BULLISH
MOMENTUM: IMPULSIVE AND NON-VOLATILE
