EUR/JPY: 100 4hr sma capping recoveries – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair gained ground this Monday, up to 123.49 in the US afternoon, as the Japanese yen weakened on the back of worldwide stocks recovery.

Key Quotes:

“The pair erased half its Friday’s losses, and seems poised to advance in the short term, although in the longer run, the downside remains favored, given that in the daily chart the price continues developing far below a bearish 100 DMA.

In the 1 hour chart, the price has managed above a flat 200 SMA, whilst the technical indicators present modest bullish slopes within positive territory, supporting some further advances up to the 123.80 region, where it will meet the 100 SMA, the immediate resistance.

In the 4 hours chart, however, the price is struggling to advance above a mild bearish 100 SMA, whilst the technical indicators aim higher around their mid-lines, suggesting that advances will be short-lived, as long as the price remains below 124.40 a strong static resistance level.”
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Source:: FX Street