FXStreet (Guatemala) – Valeria Bednraik, chief analyst at FXStreet noted that EUR/JPY surged up to 140.08 on the back of EUR demand, a fresh 5-month high, and sits nearby by the end of the US session.
Key Quotes:
“The EUR/JPY 1 hour chart shows that the price extended far above its 100 SMA, currently around 136.80, whilst the technical indicators turned flat in extreme overbought levels, more reflecting the ongoing consolidation rather than suggesting the cross is exhausted towards the upside.”
“In the 4 hours chart the technical picture is quite alike, with the technical indicators losing upward strength in extreme overbought levels, but far from signaling a downward move.”
“The EUR/JPY has added almost 500 pips, which means a downward corrective movement can’t be dismissed. Nevertheless, a price acceleration through the critical 140.00 figure should lead to additional advances ahead of Friday’s US employment figures release.”
(Market News Provided by FXstreet)