EUR/JPY: limited downside risk above 134.40 – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik>, chief analyst at FXStreet explained that the Japanese Yen has been generally stronger, particularly in the crosses, due to the increasing demand of safe-haven assets.

Key Quotes:

“The fact that the BOJ has left its economic policy unchanged in its last meeting, is providing further support to the currency, although investors will likely wait for the outcome of October’s meeting before resuming yen’s buying, as there is some speculation the Central Bank may act then.

In the meantime, the daily chart shows that the price has managed to recover above its 200 DMA on Friday, but it’s still way below the 100 DMA, currently around 136.70.

In the same chart, the technical indicators are hovering in neutral territory, with the RSI indicator aiming higher around 47, none suggesting an upward continuation for this Monday.

Shorter term, the 4 hours chart shows that the technical indicators have partially retraced from their highs, but remain well above their mid-lines, limiting chances of a bearish breakout as long as the 134.40 support contains the downside.

A break below this last however, will signal an increasing bearish potential, with the price then most likely returning to its recent lows in …read more

Source:: FX Street