EUR/JPY has recently broken above the corrective structure after breaking above 123.50 resistance level. EUR is expected to extend gains in the coming days as it has cleared above the corrective structure. Today, we have the flash GDP report from the eurozone which is expected to be unchanged at 0.5%. Moreover, the German ZEW economic sentiment is expected to increase to 22.3 versus the revious reading of 19.5. The trade balance is expected to decrease to 18.8B which previously was at 19.2B. On the other hand, Japan presented negative reports today. The Tertiary Industry Activity came at -0.2% which was expected to be positive at 0.1%. JPY is currently trading weaker against EUR which has a scope for climbing further upwards in the coming days.

Now let us look at the technical view. The price has broken above the corrective structure resistance of 124.50 with a daily close yesterday. Currently, the price is correcting above this level. As long as the price remains above 123.50 support level, our bias will be bullish with a target towards 127.25. We may see some retracement towards 124.50 or 123.50 support levels before the pair moves up towards 127.25 resistance level. In this scenario, our bullish bias will change if the price breaks below 123.50 with a daily close.