EUR/JPY has been quite impulsive with the bearish gains recently which is expected to push the price much lower in the coming days. Recently, JPY has been struggling with the economic reports, whereas EUR having mixed economic reports could not dominate JPY in the current circumstances.
Today, JPY Prelim GDP report was published with a decrease to -0.2% from the previous positive value of 0.4% which was expected to be at 0.0% and Prelim GDP Price Index report was also published with a decrease to -0.2% from the previous value of 0.1% which was expected to increase to 0.3%. Additionally, today JPY Revised Industrial Production report is going to be published which is expected to be unchanged at 1.2%.
On the other hand, today EUR German Final CPI economic report is going to be published which is expected to be unchanged at 0.0%, Final CPI is expected to be unchanged as well to 1.2% and Final Core CPI is also expected to be unchanged at 0.7%. Moreover, today ECB President Draghi is going to speak today at an ECB Event held in Frankfurt which is expected to have neutral impact on the gains of EUR against JPY in the current market scenario.
As of the current scenario, EUR economic reports forecasts are quite indecisive in nature which is expected to have corrective price action in the coming days, whereas JPY gaining momentum despite the worse economic reports does indicate the weakness of EUR in the process. If EUR fails to present better economic report results today, further JPY gains are expected in the pair for the coming days.
Now let us look at the technical view. The price has recently rejected off the dynamic levels of 20 EMA, Tenkan and Kijun Sen after certain retracement of the previous impulsive bearish trend. The price is currently expected to proceed lower towards 129.50 in the coming days which if broken below will lead to further bearish pressure in the future. As the price remains below the 132.00 area with a daily close, further bearish momentum is expected in this pair.
