EUR/JPY: heading for further declines – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that EUR/JPY plummeted to 125.22 a fresh 2-week low, and trades a handful of pips above it, as the day comes to an end, with the Japanese yen being on demand ever since the day started, as poor Japanese data spurred risk aversion, leading to strong gains in the safe-haven yen.

Key Quotes:

“After testing the 61.8% retracement of its latest daily decline on Friday, the pair is currently trading below the 38.2% retracement of the same decline, around 125.95, indicating bears have taken over the pair.”

“The short term picture shows that most of the action occurred in the previous Asian session, and that the pair has been pretty much consolidating during the European and American sessions, as EUR demand has prevented the pair from falling further.”

“In the 1 hour chart, the price is far below its 100 and 200 SMAs, while the technical indicators have resumed their declines within bearish territory, after erasing extreme oversold readings. In the 4 hours chart, the Momentum indicators is aiming to bounce from oversold levels, but the RSI indicator keeps heading lower around 32, supporting additional declines for the upcoming Asian session.”
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Source:: FX Street