EUR/JPY has been in a volatile bullish structure after breaking and retesting the level of 123.50. Today, GFK German consumer climate report was published with a positive figure at 10.4 which was expected to be at 10.2. Besides, ECB President Draghi is going to speak today about short-term interest rates and upcoming monetary policy. This event is likely to bring high volatility in this pair today. On the other hand, JPY is going through negative economic reports. Thus, yesterday the flash manufacturing PMI was published with a reduced value at 52.0 which was expected to be at 52.9. Moreover, the All Industry Activity index was negative at -0.6 versus the expected -0.4%. EUR is currently stronger than JPY fundamentally and technically and if EUR continues to gain all over the week against JPY, then further gains are expected in this pair on the EUR side.

Now let us look at the technical view. Yesterday's daily candle closed with an indecision bar and currently EUR is losing some ground against JPY on the intraday basis. We are expecting some bearish move in this pair today with a target towards 124.50 before the price bounces again off the 20 EMA to proceed much higher towards 127.50 resistance area. We are currently in bullish bias until the price breaks below 123.50 with a daily close.