EUR/JPY has been non-volatile in the impulsive bearish bias after breaking below 129.50 area with a daily close. Though EUR has not been affected recently by negative economic reports, certain gain on the JPY side is explaining the strength of market sentiment.
Recently, Japan's SPPI report was published with an increase to 0.9% which was expected to be unchanged at 0.5%. The positive economic report helped JPY to extend its gains and increase the bearish momentum. Moreover, tomorrow Japan's Retail Sales report is going to be published which is expected to have a slight decrease to 0.9% from the previous value of 1.0% and BOJ Governor Kuroda is going to speak as well that is expected to have a great impact on the further JPY gains.
On the EUR side, today the eurozone's M3 Money Supply report was published with an increase as expected to 3.9% from the previous value of 3.7% and Private Loans was published unchanged at 2.9% which was expected to increase to 3.2%. The mixed economic reports did not quite help the currency but injected some volatility in the pair as per current observation.
As for the current scenario, EUR is expected to have short-medium term gains against JPY in the process which might lead to certain bullish pressure along the way before price finally pushes lower with a target towards 122.50 area in the future.
Now let us look at the technical view. After breaking below 129.50 important price area with a daily close, bulls have failed dramatically to have certain pullbacks along the way. Without any certain retracement and being far from the Mean of 20 EMA, the price is currently expected to push higher for a certain period towards 128.50-129.50 area before pushing further lower towards 122.50 in the future. As the price remains below 129.50 with a daily close, the bearish bias is expected to continue.