EUR/JPY: Sellers press gas pedal in Tokyo

By FXStreet FXStreet (Bali) – EUR/JPY has come under renewed pressure in Tokyo, printing quotes below 133.50 after failing to take out its immediate resistance at 133.75/80.

The pair was sold aggressively on Thursday, after ECB’s President Mario Draghi discreetly hinted at the possibility for an expansion of the CB’s QE program should the inflation/growth oulook not improve.

ECB Governing Council increased the bond issue share limit, with Draghi saying they approved holding 33% of an issue of bonds compared to 25% prior. The unambiguously interpretation was that the ECB is prepared to take further action amid a downgrade in forecasts, low oil and turmoil in emerging markets.

EUR/JPY technicals

According to Valeria Bednarik, Chief Analyst at FXStreet: “The short term technical picture in the 1 hour chart shows that the technical indicators hold in extreme oversold levels, whilst the price is far below its moving averages, all of which maintains the risk towards the downside.”

As per the 4 hours chart, Valeria adds: “The RSI is bouncing around 25, still far from suggesting an upcoming upward corrective movement, whilst the Momentum indicator has also lost its bearish strength, but stands well into the red.”
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Source:: FX Street