EUR/JPY is currently residing inside the corrective and volatile structure of 128.50 to 130.60 area after a long non-volatile bullish trend in place. EUR and JPY have been mixed with the economic reports published recently which lead to further correction in the market. Today, German Factory Orders report was published with a negative value at -0.7% from the previous positive value of 0.9% which was expected to be at 0.2%, Italian Retail Sales report was published as expected at -0.2% which previously was positive at 0.6%, and Retail PMI report showed a slight decrease to 50.8 from the previous figure of 51.0. On the JPY side, today Average Cash Earning report showed negative value of -0.3% from the previous positive value of 0.4% which was expected to increase to 0.5%. To sum up, both currencies in this pair has been quite worse with the economic reports published today that is expected to lead to further correction in the coming days unless any high impact report with positive result provides any direction on either side of this pair.
Now let us look at the technical chart. The price is currently residing inside the range of 128.50-130.60 area which is expected to be corrective in nature inside this range. As of the current situation, we will be looking forward to having a break on either side of the range with a daily close showing some impulsive bullish or bearish direction to predict the upcoming move. As of the non-volatile bullish trend was in place for this pair before it came into the correction, the breakout towards the upper side is quite expected to happen. If price breaks above the 130.60 level with a daily close, then we will be looking forward to targeting 132.20 resistance level.
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