EUR/JPY is currently correcting itself at the edge of breaking the support area of 123.30-50. A good amount of volatility has to strike the market since last week as the price is trying to break below the support area but failed several times to do so. Recently JPY has been quite stronger than EUR and if today's BSI Manufacturing Index comes better than expected figure of 1.5 which previously was at 1.1, we might see a further gain on the JPY side today. Despite the recent negative economic reports of JPY, the currency has managed to gain consistently and it is expected that a positive outcome in the recent reports will provide more push to the gains. On the Eurozone side, today French Final Non-Farm Payroll report is going to be published which is expected to be unchanged at 0.3%, German WPI is expected to decrease to 0.2% from 0.3% previously, German ZEW Economic Sentiment is expected to publish with slightly improved figure at 21.6 which previously was at 20.6 and Eurozone ZEW Economic Sentiment is also expected a rise to 37.2 from 35.1 previously. A good amount of economic reports is going to be published on the Eurozone today and it is expected to bring in a good amount of volatility in the market. As the market is currently volatile due to mixed economic reports of both currencies of the pair, so any edge on economic reports today will provide a chance to gain further on each side. Though JPY is expected to have an upper hand over EUR this week due to upcoming JPY Monetary Policy Statement and Bank of Japan Policy Rate to be published on Friday this week.

Now let us look at the technical view, the price is currently struggling to break below the support area of 123.30-50. Currently, we can see a bearish engulfing candlestick pattern engulfing the last 2 days of price action which signals further bearish move in the pair for the coming days with a target towards 120.60 support level. As the price remains below 123.50 with a daily close we will be within a bearish bias and will be continuing to chase the target towards the 120.60 support level in the future.