EUR/JPY lifting on quiet markets, but bearish pressure still heavy

• EUR/JPY up on thin Chinese holiday markets.
• Pair still trading near the bottom in bearish action.

EUR/JPY is lifting in Tokyo trading, testing the waters around the 132.00 handle in quiet markets, with Chinese banks off for the first half of the week to celebrate Chinese New Year.

The Yen softened briefly in early Asia trading following disappointment in Japanese trade balance data, and as FXStreet's own Omkar Godbole noted in a GBP/JPY piece, "Japan reported trade deficit of ￥(JPY) 943.4 billion in January as imports rose 7.9 percent year-on-year and exports jumped 12.2 percent. Meanwhile, the Tankan index showed confidence among Japanese manufacturers worsened... Both data sets have not had any significant impact on the JPY pairs". The price movements following trade figures is relatively small, and unlikely to make a dent on overall market sentiment heading through the week.

EUR/JPY Technicals

The pair has declined for two straight weeks, and the long-term bull run is being deeply threatened as price has dropped below the 34 EMA, and inches closer to the 200-day SMA, now sitting at 130.93. Bearish moves will be challenged by support at Friday's low of 131.81, and 131.60 further down, while a bullish correction will have to contend with resistance at 132.38, 132.53, and 132.95 before the pair can carry higher.