The Euro (EUR) inched lower against the Japanese Yen (JPY) on Monday, 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 122.73. 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.

Eurozone Unemployment

Eurozone unemployment was unchanged at 9.8% for November from the previous month and was also in line with consensus market expectations. The rate equalled the lowest rate since July 2009 and also declined from the 10.5% seen in November 2015. The rate of youth unemployment increased to 21.2% from 20.9% previously, although there was a net reduction from the 21.8% seen in November 2015.

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.