EUR/JPY is currently on the verge of breaking below the support of the corrective structure at 123.50. Today, Japan's Average Cash Earnings report showed an increase to 0.5% from 0.0% earlier, better than the forecast for a 0.3% gain. As a result, JPY has advanced against EUR today. As the Average Cash Earnings represent the disposable income which leads to rising consumer spending and the economic recovery, the news gave JPY a fresh impetus against EUR today. JPY strength is expected to continue further in the coming days. On EUR's side, today the eurozone released the headline IHS Markit Eurozone Retail PMI which was published with a worse figure at 52.0 from 52.7 previously, Sentix Investor Confidence showed an increase to 28.4 from 27.4 previously which was expected to be at 27.6, and Retail Sales report came in at worse figure of 0.1% from 0.3% which was expected to be at 0.2%. Overall, the Eurozone had mixed economic reports today that are inferior to the Japanese Average Cash Earnings. As a result, JPY is expected to gain further against EUR in the coming days.

Now let us look at the technical chart. The price is currently on the verge of breaking below the important support level of 123.50. If we see a daily close below 123.50 today, then we will expect a further bearish move in this pair with a target towards 121.10 in the future. As the price has broken below the dynamic level of 20 EMA and is set to break below 123.50, the pair is currently in a bearish bias until price breaks above the 20 EMA with a daily close.