Valeria Bednarik, chief analyst at FXStreet explained that nose diving stocks and falling US yields, fueled the Japanese yen’s advance, which gained against all of its major rivals.
Key Quotes:
“The EUR/JPY pair plummeted to its lowest since late January, reaching 128.75 before bouncing back some. The pair broke below a short term ascendant trend line and fell sharply afterwards, indicating increasing bearish interest around the pair. Short term, the 1 hour chart shows that the price is below its 100 and 200 SMAs, with the shortest crossing below the largest in the 130.70 region.
Also in the same chart, the Momentum indicator heads south near oversold levels while the RSI hovers around 30 after correcting extreme oversold readings, all of which maintains the risk towards the downside.
In the 4 hours chart, the price is below its moving averages, while the technical indicators are posting tepid bounces from near oversold territory, but remain far from supporting some additional gains.”
(Market News Provided by FXstreet)