The correction phase on the EUR/JPY started from December 2016 which is still in progress. This market has presented itself with good number of corrective moves along the way making the market very volatile to trend without any specific trend indication. There had been not much high impact economic event about EURO this week in comparison to JPY's monetary policy statements and policy rates which remained unchanged. Today the market has EURO retail sales report which is expected to have 0.03% as of previous -0.04% and Italian Prelim CPI which is expected to have 0.02% which was previously 0.04%. Currently JPY meeting minutes is taking place which is said to favor JPY to gain against the EURO in the coming days.
Now moving toward the technical point of view, the pair has shown a good amount of volatility between 122.70 and 120.90 area and with prior fake breakouts it is quite confirmed that the market is quite indecisive. Currently the market is technically not in a state of taking on decision on either side of the market but as the recent false break was against the bulls and bears have taken out the bulls with a quite impulsive manner it is expected that if the market breaks below 120.90 area with a daily close we can look for downward target towards 118.50 area which is the next best support the price can have after 120.90 is taken out.
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