EUR/JPY: bulls stepping aside for multi week lows – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen held to its recent strength, resulting in an almost 200 pips decline in the EUR/JPY towards levels not seen since mid April this year.

Key Quotes:

“The pair has lost over 400 pips during the last three trading days and, despite oversold, there are no technical signs that a bottom has been reached, as the daily chart shows that the technical indicators maintain their sharp bearish slopes, with the RSI indicator heading south around 22.”

“Shorter term, the 1 hour chart shows that the technical indicators have corrected some of their extreme oversold readings before turning back south in extreme territory, while the price continues accelerating further below its 100 and 200 SMAs. In the 4 hours chart, the technical indicators have lost their bearish momentum, but hold well into oversold territory, while the 100 SMA is about to cross below the 200 SMA, both well above the current level, in line with a continued decline.”
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Source:: FX Street