The currency pair dropped on Thursday, but continues to stay above important support levels and maintains a bullish perspective on the short term. Is moving somehow sideways on the Daily chart maybe because has tried to recapture more directional energy to be able to climb much higher in the upcoming period.
Is trading near the 129.90 level, but could retest some support level again today, we’ll see how will react because the Yen looks undecided on the short term. Yen could increase significantly versus its rivals if the Nikkie stock index will drop in the upcoming days, the index failed once again to close and to stabilize above the 20058 static resistance, a drop towards the 19700 will force the EUR/JPY to decrease as well.
We’ll see what impact will have the Japanese data, the Unemployment Rate could decrease from 3.1% to 3.0% in June, while the Retail Sales could increase by 2.3% and could exceed the 2.1% growth in the former reading period. The Tokyo Core CPI could increase by 0.1% in July, more versus the 0.0% in June, the National Core CPI by 0.4%, matching the 0.4% growth in the former reading period. The Household Spending will be released as well and could increase by 0.6% in the previous month after the 0.1% in May.
Price failed to reach the 130.76 previous high and now could come down to retest the median line (ml) of the minor ascending pitchfork and the upper median line (UML) of the major ascending pitchfork. The perspective remains bullish as long as is trading above these levels and above the 38.2% retracement level, we may have a buying opportunity if the support levels will hold, but only if the JP226 will climb and will stabilize above the 20058 level.
The next upside target will be at the 150% Fibonacci line (ascending dotted line), we’ll have an important upside momentum if will close above the 130.76 previous high.
