EUR/JPY: looking neutral with bearish bias – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY extended its weekly gains up to 124.64, a handful of pips above the previous high, before erasing almost all of its intraday gains and settling around the 124.00 figure.

Key Quotes:

“The Japanese yen saw some demand during US trading hours, forcing the pair down to 123.71, the daily low. Japanese officers resumed their jawboning this Thursday, as Governor Kuroda talking about the ECB’s negative rate loan program, said that Japan’s interest rates can technically go as low as the ECB’s, but the effect is more and more limited as time goes by without real action.

Now, the short term picture for the pair is for the most neutral, as the price continues holding above a bullish 100 SMA, currently around 123.65, whilst the technical indicators turned south around their mid-lines.

In the 4 hours chart, the price remains trapped between the 100 and 200 SMAs, while the technical indicators head lower within positive territory, not enough to confirm a downward continuation.”
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Source:: FX Street