EUR/JPY is currently residing below the resistance area of 134.50 which is expected to push the price lower in the coming days. JPY has been quite positive with the recent economic reports which helped the currency to gain good momentum over EUR while most of the activities in EUR is currently on pause due to the observance of holidays. Today JPY Housing Starts report was published with a better value of -0.4% from the previous negative value of -4.8% which was expected to be at `-2.5%. Though the positive economic report today was not quite handy for the JPY to sustain the impulsive momentum it had yesterday. On the other hand, today we do not have any EUR economic reports to be published but tomorrow EUR Economic Bulletin is going to be held which is expected to have minimal impact on the gains of EUR against JPY and on Friday we have German Prelim CPI, Spanish Flash CPI and M3 Money Supply where the forecasts are quite mixed and do not provide any hint on upcoming strengthening of EUR. As of the current scenario, JPY is expected to gain momentum whether for a certain period until EUR starts to provide high impact economic reports with positive results after the New Year Holiday is over.
Now let us look at the technical view, the price is currently residing below the 134.50 resistance area which was expected to push the price lower in the coming days towards 131.50 area in the coming days. The price has recently pushed higher above the 134.50 area but could not sustain the gains leading to a result of False Break and as the price remains below the 135.00 resistance area, which is the highest peak of the false break, the bearish bias is expected to continue further.