EUR/JPY: risks remain to the downside – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen recovered most of the ground lost with the FED, after the Bank of Japan decided to apply some changes to their stimulus plans, in its Friday’s economic policy meeting.

Key Quotes:

“The Central Bank adopted new measures, including expanding the eligible collateral for Bank credit, in a desperate move to boost local inflation, still far below the 2.0% target. The EUR/JPY pair fell down to 131.01 on Friday before bouncing up to 133.66 where it closed, down for a second week in-a-row. From a technical point of view, the pair is gaining bearish potential as in the daily chart the pair retreated sharply after testing a bearish 100 DMA while the technical indicators turned sharply lower, although are still above their mid-lines.

In the 4 hours chart, the technical indicators have barely bounced from oversold readings before resuming their declines, whilst the price is back below its 100 and 200 SMAs, maintaining the risk towards the downside.”
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Source:: FX Street