EUR/JPY: headed for 128 handle? – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the Japanese curreny edged sharply higher against all of its major rivals last week, as the safe-haven currency benefited from market turmoil, and the EUR/JPY plummeted to 125.76.

Key Quotes:

“Levels last seen in June 2013, before rumors of a BOJ’s intervention helped it bounce back above the 127.00 level. The ground recovered on Friday, however, stalled well below Thursday’s high and the daily chart shows that the price stands far below a bearish 20 SMA, that the Momentum indicator heads south within bearish territory and that the RSI hovers around 36, all of which indicates the pair may continue falling this week.

Shorter term, the 4 hours chart shows that the technical indicators have already corrected extreme oversold readings, but remain well below their mid-lines, while the price is far below its moving averages. A recovery above 127.95, Thursday’s high and the immediate resistance is required to confirm further advances at the beginning of this week.”
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Source:: FX Street