EURJPY has been quite impulsive with the bearish pressure today which is expected to create lower highs in the coming days. Despite having worse economic reports today, JPY gained impulsively which was quite impressive but expected. Today Japan’s Prelim Industrial Production report was published with negative value of -6.6% decreasing from the previous positive value of 2.9% which was expected to be at -4.4%. Furthermore, the Retail Sales decreased to 1.6% from the previous value of 3.6% which was expected to be at 2.3% and Housing Starts report was also published with a significant decrease to -13.2% from the previous value of -2.1% which was expected to be at -4.5%. On the other hand, today the German Gfk Consumer Climate report was published as expected at 10.8 decreasing from the previous figure of 11.0. Besides, the French Consumer Spending decreased to -1.9% from the previous value of -1.2% which was expected to increase to 0.5%. Additionally, the French Prelim CPI was unchanged at -0.1% which was expected to increase to 0.3%, while the French Prelim GDP was published unchanged as expected at 0.6%. At the same time, the German Unemployment Change report was published better than expected. Moreover, EUR CPI Flash Estimate was published as expected at 1.2% decreasing from the previous value of 1.3% and Core CPI Flash Estimate report was published unchanged at 1.0%. As of the current scenario, despite having mixed economic reports on the EUR side, JPY gained impulsive momentum which explains the strength of JPY. As some key economic reports are yet to be published in Japan this week, JPY is expected to extend gains against EUR in the coming days.
Now let us look at the technical view. The price is currently quite impulsive with the bearish pressure which is expected to push the price much lower towards 129.50 support area in the coming days. The upcoming momentum in the pair is expected to be quite impulsive on the bearish side where the 129.50 area can be reached quickly. As the price remains below 132.00 price area, the bearish bias is expected to continue further.