EUR/JPY: 126.00 on the cards? – FXStreet

By FXStreet Valeria Bednarik, chief analysts at FXStreet explained that the Japanese Yen weakened modestly at the beginning of the day, on the back of a stronger Nikkei as a consequence of a re-surge in risk appetite, and another round of jawboning from local authorities, who stressed out that latest yen’s advance are “one-sided” and undesirable, and that they won’t hesitate to act if needed.

Key Quotes:

“An also weak EUR prevented the EUR/JPY from advancing much, and the pair posted some modest gains daily basis, but was unable to advance beyond 124.00. Short term, the 1 hour chart shows that the price is hovering around a sharply bearish 100 SMA, whilst the technical indicators lack directional strength within positive territory, indicating a limited upward potential at the time being.”

“In the 4 hours chart, the RSI indicator heads slightly higher around 44 whilst the Momentum indicator remains flat around its 100 level, also suggesting limited buying interest around the pair. Some follow through beyond 124.45, a Fibonacci resistance, is required to see the pair develop a more constructive outlook, with scope then to recover up to the 126.00 price zone.”
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Source:: FX Street