EUR/JPY: in extreme oversold conditions- FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair reversed its early slide and closed in the green above the 128.00 level, after reaching a lower low for the week at 126.77, as the Japanese yen appreciated during the first half of the day, but the EUR stood victorious during the second half of the journey.

Key Quotes:

“The pair presents extreme oversold conditions in the daily chart, where the technical indicators seem to be ready to turn higher, supporting at least an upward corrective movement for this Friday. Shorter term, the 1 hour chart shows that the 100 SMA has extended its decline further above the current level, now providing an immediate resistance around 128.65.

In the same chart, the Momentum indicator heads higher above the 100 level, while the RSI indicator is now flat around 59, in line with further advances. In the 4 hours chart, the RSI indicator has begun correcting its extreme oversold readings and heads higher around 42 while the Momentum indicator is crossing its mid-line towards the upside, supporting the shorter term perspective.”
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Source:: FX Street