Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair remained confined to a familiar range this Thursday, as investors were not sure on what to do with the Japanese Yen.
“The currency fell at the beginning of day as broad dollar’s demand persisted during the Asian session, but failure of the USD/JPY to extend beyond 113.00 and falling equities sent it back higher.
The common currency had little saying in the pair, trading in quite a limited range against most of its major rivals.
Technically, the pair has recovered from a daily low at 125.38 and trades slightly above its daily opening, and the short term picture shows that the price is currently above its 100 and 200 SMAs, both lacking directional strength, while the technical indicators are crossing their mid-lines towards the upside, suggesting the pair may extend its advance towards the 126.15 region, the immediate resistance.
In the 4 hours chart, the technical indicators have turned higher above their mid-lines, whilst the daily low converges with a bullish 100 SMA, indicating some increasing buying interest around the pair.”
(Market News Provided by FXstreet)