EUR/JPY: 132.20 key downside target – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair lost additional 150 pips this Tuesday, on demand for the Japanese yen due to its safe-haven status, and a generally weaker EUR.

Key Quotes:

“The pair fell as low as 133.30 before posting a shallow bounce by the end of the day, but maintains a strongly bearish tone ahead of Asian opening, as the 1 hour chart shows that the technical indicators maintain limited negative slopes in extreme oversold levels, whilst the 100 SMA is extending below the 200 SMA, both in the 135.70/70 region.”

“In the 4 hours chart, the technical indicators maintain their strong bearish slopes, despite the extreme oversold readings, as the RSI stands at 24. Moreover, the pair is back below its 200 DMA, after failing to recover above the 100 SMA mid last week, suggesting the bearish momentum can extend in the mid-term. The main bearish target now is the 132.20 price zone, the low achieved during the Black Monday at the beginning of this September.”
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Source:: FX Street