EUR/JPY has been impulsively bearish recently after bouncing off 132.50 resistance area. The pair is still residing inside the corrective range between 131.70 to 134.40 area but currently having a bearish squeeze above the support area. Today ECB President Draghi spoke about the European Banking Supervision which has been quite successful as it has contributed well into the banking sector and on the monetary policy. Draghi has been quite hawkish with his speech today which helped the currency to gain some momentum against JPY but found not sufficient to sustain the gain. Along with the event, today Italian Retail Sales report was published with an increase to 0.9% from the negative value of -0.2% which was expected to be at 0.2%, Retail PMI report showed slight decrease to 51.1 from the previous figure of 52.3, Retail Sales report showed increase to 0.7% from the negative value of -0.1% which was expected to be at 0.6% and ECOFIN Meeting is still undergoing which covers the economic policies, decisions and Eurozone Economic health which is expected to be quite neutral in nature. On the JPY side, today Average Cash Earnings report was published with an increase at 0.9% from the previous value of 0.7% which was expected to decrease to 0.6%. As of the current scenario, JPY is stronger in comparison to EUR despite the hawkish results of EUR published today which does indicate that JPY has the possibility of better gains in the coming days over EUR.
Now let us look at the technical view, the price is currently showing some bearish pressure by rejecting the bulls off the mid-resistance area of 132.40-50 which is currently expected to show bearish pressure with the target towards 129.80-130.00 support area in the coming days. As the price remains below 132.40-50 resistance area with daily close the bearish bias is expected to continue further.
