The Euro (EUR) inched lower against the Japanese Yen (JPY) on Wednesday, dragging the price of EURJPY to less than 123.00 following the release of some key economic news. The technical bias remains bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded around 122.61. A hurdle may be noted near 123.85, the horizontal resistance area ahead of 124.00, the confluence of psychological number as well as swing high of the last major upside rally as demonstrated in the given below daily chart.

On the downside, the pair is likely to find a support around 121.63, the horizontal support area ahead of 118.65, another critical support area and then 116.24, the highs of September 2016. The technical bias shall remain bullish as long as the 112.60 support area is intact.

Spanish Unemployment

Spanish jobless claims fell more than estimated in December as firms boosted hiring for the Christmas season in welcome news for Prime Minister Mariano Rajoy, who made a pledge to cut unemployment a centerpiece of his re-election campaign. Jobless claims decreased by 86,849 from November after rising for the previous four months, the labor ministry said on Wednesday. That’s more than the 50,000 decline predicted in a Bloomberg survey of seven analysts. Jobless claims fell by 390,534 in 2016, the biggest drop on record as they decreased at a rate of 9.5 percent, the steepest decline since 1999, the ministry said.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.