EUR/JPY: risks mounting to the downside – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that EUR/JPY ended the day with limited losses, as the yen was on demand amid sliding stocks, but the EUR also surged against the greenback.

Key Quotes:

“Asian shares came under pressure on poor Chinese data, as in the country, industrial profits fell 8.8% in August from a year before, outpacing July’s decline of 2.9%. Fears of a global economic slowdown spread among worldwide indexes, which resulted in a firm demand of the safe-haven yen. The pair traded as low as 133.90 intraday, but managed to recover to end the day above its 200 DMA, currently around 134.40.”

“Shorter term, the 1 hour chart shows that the technical indicators have recovered from oversold readings, but turned flat around their mid-lines, as the price meets selling interest on approaches to the 135.00 level. In the same chart, the price is back above its 100 SMA that anyway remains horizontal, lacking directional strength.”

“In the 4 hours chart, the Momentum indicator is flat around its 100 level whilst the RSI aims slightly higher around 48 and the price develops below its moving averages, all of which maintains the risk towards the downside.”
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Source:: FX Street