EUR/JPY: probing more upside in strong recovery

By FXStreet FXStreet (Guatemala) – EUR/JPY is currently trading at 135.73 probing the upside ahead of Tokyo open with a low of 135.62.

EUR/JPY has been somewhat caught in the middle of the dollar strength post the retails sales data that at pest was positive, but still quite ordinary according to Rob Carnell at ING Bank when adjusting for prior revisions.

However, the US dollar rallied ahead of the key FOMC decision this week and the Yen dropped a cent and the euro slid less, but lost the 1.13 handle leaving it better bid vs the Yen with the cross making a minor recovery off the 135.00 level.

EUR/JPY mixed

Technically, EUR/JPY is a mixed picture. On one hand, “In the 4 hours chart, the technical indicators also head higher, but are still below their mid-lines, suggesting a firmer advance is required to see the pair extending its rally over the upcoming sessions,” explained Valeria Bednarik, chief analyst at FXStreet. On the other, Karen Jones, chief analyst at Commerzbank explained, “We continue to view the upside as limited, but loss of 134.80 will be needed to alleviate immediate upside pressure for a slide back to 133.10 and then to the 132.24/131.80 recent low and 61.8% …read more

Source:: FX Street