EUR/JPY: risk remains with the downside – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair fell down to 130.63 at the weekly opening, as the Japanese yen strengthened on safe haven demand. The pair however, changed bias after the release of poor Japanese GDP figures that fueled speculation the BOJ will have no choice but to extend their stimulus program.

Key Quotes:

“Technically, the 1 hour chart shows that the price’s recovery reached 132.20, where the 200 SMA attracted selling interest. Now trading also below the 100 SMA, the technical indicators in the same time frame continue retreating from overbought levels and maintain bearish slopes, but above their mid-lines.”

“In the 4 hours chart, is clear that the pair has posted a lower low daily basis below a bearish 100 SMA, whilst the technical indicators turned lower below their mid-lines, maintaining the risk towards the downside.”
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Source:: FX Street