The EUR/JPY pair has been trading sideways since the 7th of June 2016, with the price ranging between the levels of 122.23 and 121.31.
The pair ranged between the levels of 121.99 and 121.31 during the course of the day on Wednesday. Today, the pair has been trading in the lower band of the daily range, around 121.56.
The negative performance of the Nikkei index has been bolstering the demand for the yen, while increasing bearish sentiment in the cross. Ahead in the session, investors will be monitoring ECB president‘s speech.
In the event that the price breaks below 121.31, the pair could find support at 120.81 and 119.65 in extension.
On the flip side, in the scenario where the price breaks above 122.234, the pair could rise up to 122.72 and 123.55 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.