Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair surged to its highest since February 18th, printing 126.76 before shedding some 50 pips by the end of the US session.
Key Quotes:
“The markets were all about the EUR and how investors reacted to the ECB’s easing announcements, with the common currency playing catching up after being on-hold ever since the week started. The pair is currently at a major breakout point, as the bearish long term momentum has accelerated once the pair broke below the 126.00 level. Should the pair keep running beyond it during the upcoming Asian session, an interim bottom can be confirmed, followed by a continued advance.
Short term, the 1 hour chart shows that the pair is in a consolidative stage above 126.00, while the technical indicators have turned slightly lower within overbought territory, indicating some upward exhaustion.
In the 4 hours chart, the technical indicators have lost upward strength near overbought levels, but are not yet signaling a downward move. In the daily chart, the 100 DMA stands at 129.30, and while the level may change, as we are talking about a dynamic indicator, the market may well push the price up to it over the upcoming sessions.
(Market News Provided by FXstreet)
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