EURJPY Trend Forecast after BOJ report on Inflation

The Bank of Japan just released their stand on inflation which was pretty hawkish and the markets certainly did react to it. To give a brief recap of the currency’s performance in the last month, we observed EURJPY maintain a very strong support level between mid November and Mid December ’21 at 127.515 within a range with the resistance at 129.625.

Since December 20th ’21 the pair has registered consistent gains up until early this month at the resistance zone around 131.436 which has since been tested multiple times. As previously mentioned, the BOJ report was hawkish on the Yen which did push price down back to the now support zone at 129.474.
My bias on the pair however remain bullish up until 133.100 levels where we are likely to see stronger bearish momentum especially with the confluence between the downward trendline and the supply zone forming a strong resistance point.