Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair turned back south this Wednesday, as the common currency under-performed against all of its major rivals, although with the JPY also weak, the pair remained within its recent range.
"A change in market's mood after positive data coming from China spooked fears of a global economic slowdown, led the way, in spite of macroeconomic data.
Holding above the 123.00 level, the 1 hour chart for the EUR/JPY pair shows that the price is back below its 100 SMA, whilst the technical indicators head south below their mid-lines, all of which indicates that the risk remains towards the downside.
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In the 4 hours chart, the Momentum indicator has turned south within neutral territory, whilst the RSI also heads lower around 37, in line with the shorter term outlook. "