EUR/JPY makes new trend lows, 122.00 pauses bloodbath

By FXStreet EUR/JPY has managed to break into fresh bear trend lows, pausing just ahead of 122.00 round number, amid worsening risk sentiment, which has resulted in the Japanese Yen being the outperformer once again.

It seems as though leveraged accounts have re-initiate long Yen positions and those playing directional Yen bear bets last week on the back of improved equity market got stopped out today fighting the strong Yen trend.

EUR/JPY technical view – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes: “From a technical point of view, the pair presents a bearish tone, as in the 1 hour chart, the price has extended, and found resistance on an intraday advance. In the same chart, the technical indicators have managed to correct from oversold levels, but remain well into negative territory, with no upward strength.”

Valeria adds: “In the 4 hours chart, the Momentum heads sharply lower below its 100 level, the RSI indicator hovers around 33, whilst the 100 SMA has accelerated its decline below the 200 SMA far above the current level, supporting some further declines on a break below the mentioned low.”
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Source:: FX Street