EUR/JPY on the Verge as 122.00 Support Re-tested
EUR/JPY, just like GBP/USD
flirting with 1.4650, is also playing with fire as it re-visits a key
support at the 122.00 area, with worse-than-expected German retail sales
this morning, coupled with modestly lower German 10-year yields, and
the breakout in USD/JPY into fresh bear trend lows, is adding pressure
to the level.
It's all about USD/JPY post BoJ
According to Adam Button, writing for AshrafLaidi.com, "The stakes have surely been raised in yen trading after Thursday's moves. The spot to watch in the day ahead is USD/JPY as it flirts with the April low of 107.60 (broken in Asia); real money tends to chase big breaks so the pain could be far from complete."
Valeria Bedarik, Chief Analyst at FXStreet, notes: "Short term, the 1 hour chart shows that the technical indicators have corrected extreme oversold readings before turning back south. In the 4 hours chart, the technical indicators have also turned south after a limited upward corrective movement from extreme levels, in line with the shorter term outlook and supporting a retest of April low of 121.70."