FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair edged lower on EUR’s weakness, now trading near the base of a short term symmetrical triangle, clear in the 4 hours chart.
Key Quotes:
“The pair has had no room to advance ever since the year started, as falling Chinese years keep the Japanese currency on demand amid a continued run to safety. The Japanese yen also strengthened on the back of the latest BOJ’s decision to modify its economic easing programs, but by far less than market’s expectations.
Anyway, the EUR/JPY technical picture favors the downside for this Wednesday, as in the 1 hour chart, the price was unable to advance beyond its 100 SMA, while the technical indicators present bearish slopes, lacking momentum, but overall negative.
In the 4 hours chart, the technical indicators hold below their mid-lines, but lack directional strength at the time being, while the 100 SMA has extended its decline below the 200 SMA, both well above the current price and supporting some further declines.”
(Market News Provided by FXstreet)