EUR/JPY headed toward lowest close since June 2013

By FXStreet The euro fell against the yen on Thursday for the third day in a row and dropped to test February lows. EUR/JPY bottomed during the American session at 125.86 and then bounced modestly to the upside, but the recovery found resistance at 126.30.

Currently is hovering around 126.00; a daily at current levels would be the lowest since June 2013. Last week the euro traded below 126.00 and bottomed at 125.76 (2016 low) but then rebounded to the upside and finished that day above 127.00.

Technical outlook

“The 1-hour chart shows that the price has moved further below its 100 SMA, currently around 126.20, while the Momentum indicator consolidates in negative territory, and the RSI indicator aims higher from oversold territory, limiting chances of a downward move, but far from suggesting a sharper recovery”, said Valeria Bednarik, Chief Analyst at FXStreet.

According to her, the 4-hour chart, show technical indicators slightly higher within negative territory, “although the price remains well below its moving averages, in line with the shorter term outlook”.
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Source:: FX Street