FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen soared during the past Asian session, leading to a sharp decline in the EUR/JPY pair that later accelerated amid EUR self weakness.
Key Quotes:
“The pair fell down to 134.78 intraday, recovering some ground during the American afternoon, as the Yen eased following better-than-expected US data.”
“Nevertheless, the pair points to close the day well below its 100 SMA after holding above it for over a week, now around 136.00 and a key resistance for the upcoming hours.”
“Short term, the 1 hour chart shows that the price is well below its 100 and 200 SMAs, with the shortest turning south far above the current price. In the same chart, the technical indicators are bouncing from extreme oversold levels, suggesting the pair may correct higher during the upcoming hours.”
“In the 4 hours chart, the price is currently holding above its 100 and 200 SMAs, both in a 10 pips range and lacking directional strength, whilst the technical indicators are posting also some limited bounces well below their mid-lines. A break below the mentioned daily low however, should deny the possibility of an upward corrective move and favor a continued decline towards the 133.30 price zone.
(Market News Provided by FXstreet)