Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair gained ground after a dovish FED, reaching 126.44, as JPY gains were limited on the back of soaring stocks.
Key Quotes:
“Despite trading in the green, the pair remains within Tuesday’s range, having posted a lower high daily basis, which suggests the upside is still limited. In the shorter term, the 1 hour chart shows that the price is unable to advance above a bullish 100 SMA, while the technical indicators are losing upward strength within positive territory, far however, from suggesting a downward move ahead.”
“In the 4 hours chart, the technical indicators head higher, with the RSI indicator already above its mid-line, but the price retreating form a bearish 200 SMA, in line with the shorter term outlook. Nevertheless, additional gains beyond 126.45 should see the pair extend its advance towards the weekly high, at 127.30.”
(Market News Provided by FXstreet)