The Euro (EUR) extended upside movement against the Japanese Yen (JPY) on Friday, increasing the price of EURJPY to more 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 123.08. 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 high of September 2016. The technical bias shall remain bullish as long as the 112.60 support area is intact.

Japan’s CPI

Japan’s national consumer price index (CPI) advanced more-than-expected by 0.3% on an annual basis in December, against market expectations for a rise of 0.2%. In the previous month, the CPI had climbed 0.5%.The pair is expected to find support at 113.77, and a fall through could take it to the next support level of 112.57. The pair is expected to find its first resistance at 115.6, and a rise through could take it to the next resistance level of 116.23. Moving ahead, next week traders will closely monitor BoJ’s interest rate decision coupled with its meeting minutes.

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.