- EUR/JPY bulls are taking charge following a bearish daily impulse.
- The 50% mean reversion level aligns with the prior lows expected to act as resistance.
EUR/JPY is trading at 133.31 at the time of writing and has stuck to a 133.08 / 133.38 range.
The euro was bid at the end of last week following a sharp drop in the USD and US yields on the back of Nonfarm Payrolls that came in below expectations.
Higher beta crosses, such as EUR/JPY, outperformed as investors pushed out tapering expectations which has weighed on the greenback ahead of Super Thursday that consists of the US Consumer Price Index and the European Central bank.
May inflation numbers in the US may dampen the USD real rate and the ECB may struggle to sound any more dovish amid rising tapering speculation making for a perfect storm for a softer greenback and a firmer EUR.
The week also sees German ZEW investor expectations and German industrial production for April.
In this respect, traders will be on the lookout for signs that the economy is rebounding which could equate to and another leg higher in European bond yields and demand for European stocks.
EUR/JPY technical analysis
The bulls are attempting to correct the prior daily bearish candle.
On the 15-min time frame, the price is creating a bullish structure:
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