EUR/JPY: watch for breakout below 127.50 – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair advanced this Wednesday as improving market’s sentiment resulted in a weakening JPY, while the EUR attract buying interest when falling down to the 1.0800 region against the greenback.

Key Quotes:

“The short term picture for the pair however, signals an ongoing consolidative strange, given that the price has remained contained within the limits of a symmetrical triangle. In the 1 hour chart, the price has met selling interest around a bearish 200 SMA, a few pips below the roof of the figure, while currently struggles around its 100 SMA and the technical indicators head slightly lower around their mid-lines.

In the 4 hours chart, the price remains well below a strongly bearish 20 SMA, while the technical indicators turned lower around their mid-lines, lacking certain directional strength at the time being.

The base of the figure stands at 127.50 for today, now the immediate support, with a break below it most likely signaling a strong bearish continuation for this Thursday.”
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Source:: FX Street