The EUR/JPY pair is trading in the green at 149.12 at the time of writing. It tries to erase today's losses as the bias remains bullish in the short term. Still, the price action signaled exhausted buyers, but a downside movement is far from being confirmed.
Fundamentally, the National Core CPI rose by 3.4% matching expectations, while Tertiary Industry Activity dropped by 1.7% even if the specialist expected a 0.3% growth. On the other hand, German PPI surged by 0.3% compared to the 0.5% drop estimated.
EUR/JPY 148.77 Key Support!
Technically, the EUR/JPY pair failed to stay above the inside sliding line (sl) and now it has dropped below the uptrend line (channel's uptrend line).
It has found support around 148.77 and now it has turned to the upside after registering only a false breakdown with great separation. After its massive drop, the pair could try to come back to retest the broken uptrend line.
EUR/JPY Forecast!
A new lower low, a bearish closure below 148.77 activates a larger downside movement and represents a selling signal.
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