EUR/JPY has been quite bullish this week residing inside the corrective range of 131.40 to 134.40. EUR has been quite impulsive with the recent gains against JPY. EUR found support from the eurozone's upbeat economic reports whereas JPY is struggling to gain sustainable momentum. Today, Japan's All Industry Activity report was published with an increase to 0.3% from the previous value of -0.5% but it could not meet the expectation of +0.4%. The positive economic report helped the currency to gain some momentum over EUR but keeping this pressure is going to be a bit of a challenge for JPY. On the EUR side, today German PPI was published with a decrease to 0.1% from the previous value of 0.3% which was expected to be at 0.2%, Current Account report is yet to be published which is expected to decrease to 33.4B from the previous figure of 37.8B, Belgian NBB Business Climate is expected to increase to 2.0 from the previous figure of 1.6, and German Buba President Weidmann is going to speak about the outlook for the monetary policy and interest rates decision. His rhetoric is expected to be quite neutral in nature. As for the current scenario, EUR has a lot to offer today despite the worse economic report from Germany. As the global trading day progresses, any positive economic report or event today will add up to the bullish gains in the pair. On the other hand, negative readings of economic reports today will help JPY to gain momentum in the coming days.
Now let us look at the technical chart. The price is currently residing above the dynamic level of 20 EMA inside the range of 131.40 to 134.40 area. The price is following the bullish bias, aiming to move higher towards 135.50 as the price remains above 131.40 support level with a daily close. On the other hand, if the price breaks below 131.40 with a daily close, then the bears are likely to take over and push the price lower towards 129.80 support area.
