The euro started the day in positive territory against the Japanese yen, extending the rebound from last week. EUR/JPY moved with an upside bias all day and peaked during the American session at 127.05.
The pair failed to hold above 127.00 and pulled back toward 126.80. The upside lost strength today slightly below the 127.30 area were March highs are located.
EUR/JPY technical outlook
“The short term picture for the EUR/JPY pair is positive, given that the price rallied above its 100 and 200 SMAs in the 1 hour chart, with the shortest having advanced above the largest at the beginning of the day, and currently around 126.05”, said Valeria Bednarik, Chief Analyst at FXStreet.
She warns that price remains below March high at 127.28 that is the level to beat to present a more constructive outlook. “In the 4 hours chart, the technical indicators have lost their upward strength, but hold within positive territory, while the 100 SMA has crossed above the 200 SMA below the current level for the first time since early February, indicating a limited downward potential at the time being.”
(Market News Provided by FXstreet)