FXStreet (Córdoba) – The euro is about to end the day higher against the yen, despite EUR/USD decline. It is the second gain in a row but EUR/JPY continues to move sideways, unable to make a significant recovery after falling last week to 126.78, the lowest level since April of last year.
The pair continues to consolidate, moving between 127.00 and 128.70. It managed to stabilize after the decline from 134.58 (Dec 04 high), bottomed at 126.78 (Jan 07 low). The slide was capped less than a hundred pips above 2015 lows located at 126.09 (April 14 low).
EUR/JPY short-term technical outlook
“The technical picture is neutral, with the price nearing the vortex of the triangle that contained the price ever since the week started, diminishing the validity of the figure from now on”, said Valeria Bednarik, Chief Analyst at FXStreet. She notes that the 1-hour chart, shows the price significantly above its 100 and 200 SMAs, both with clear bearish slopes, while the technical indicators are flat.
“In the 4 hours chart, a mild positive tone comes from the technical indicators that head higher in neutral territory as the price presents higher lows daily basis, although the pair remains well below its moving averages, which reflect bears maintain the lead”, explained Bednarik.
(Market News Provided by FXstreet)