EUR/JPY: plummeted to 3-year lows – FXStreet
By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that EUR/JPY plummeted to its lowest in three years, ending the week at 121.81 as yen’s post-BOJ strength, was fueled by nose-diving stocks last Friday.
Key Quotes:
“The Japanese currency resumed its bullish run after the local Central Bank decided to leave its economic policy unchanged on Thursday, and despite the EUR also gained last week, it held within its April’s range.”
“The daily chart for the pair shows that the decline began after failing to overcome a sharply bearish 100 DMA around 126.00, indicating the long term bearish momentum is towards the downside.”
“Technical indicators in the mentioned time frame have crossed their mid-lines and accelerated their declines within negative territory, maintaining sharp bearish slopes, supporting some further declines ahead.”
“In the 4 hours chart, the technical bias is also towards the downside, as the technical indicators head south within oversold territory, after a limited upward corrective move. The next bearish target is now the 120.00 figure, with a break below it probably fueling the decline on panic selling.”
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Source:: FX Street
