Firstly, EUR/JPY took a sharp dip of around 33 pips after the release of disappointing German Business Climate figure. As per the survey report, German business confidence deteriorated in April. The Munich-based Ifo economic institute said its business climate index fell to 99.2 missing the forecast of 99.9 and the previous month figure of 99.7.
Technically, EUR/JPY pair has formed a bullish hammer candle on the 4-hour chart which is suggesting a weakening bearish bias.
EUR/JPY is gaining support at 125.250, while the Commodity Channel Index (CCI) is coming out of the oversold zone. This can be a bullish opportunity for EUR/JPY as the pair is facing a hard time to violate 125.280.
Key Trading Level: 125.59
On the lower side, the bearish breakout of 125.250 can lead the Japanese cross towards 124.670 while the resistance can be seen around 125.850 today. So let’s keep an eye on 125.250 as the market is bullish above and bearish below it.