We will see the release of a series of Markit PMI figures in Feb in the early European session today. German Manufacturing, Services, and Composite PMIs, at 08:30 GMT, followed by the Eurozone Manufacturing, Services, and Composite PMIs, at 09:00 GMT.
EUR/JPY has seen a noticeable retracement since the beginning of Feb, breaking the two-month consolidation pattern.
On 8th Feb, the downtrend was held above the support line at 119.00, where the downside mid-term major uptrend line support converges, providing a stronger support.
On 17th Feb, the bearish momentum tested the uptrend trend line support again and held.
At present, if the price holds above the support, we will likely see a rebound from here.
However, be aware that the pressure above the level at 112.00 is heavy.
If the uptrend line support is broken, the bearish momentum will likely test the support line at 119.00 again.
The daily Stochastic Oscillator is below 30, suggesting a rebound.
The resistance level is at 120.35, followed by 121.00 and 121.30.
The support line is at 120.00, followed by 119.50 and 119.00.
Keep an eye on German IFO business climate, current assessment and expectations in Feb, to be released at 09:00 GMT on Wednesday 22nd. It will likely influence the strength of the Euro and Euro crosses.