Analysis EUR/JPY - FXStreet

Analysis EUR/JPY - FXStreet

22 May 2016, 18:45
Roberto Jacobs
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Analysis EUR/JPY - FXStreet

EUR/JPY Current price: 123.55

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The EUR/JPY pair has been trading within a well-limited range during these past few days, as dollar's strength dominated the FX board, with both currencies swinging at the same pace against their American rival. The overall dominant bearish trend that has led the pair since late 2015 remains in place, despite this latest consolidation, but it seems to be slowly losing pace, amid speculation the BOJ will be forced to weaken the JPY by adding more stimulus in the nearest term. Technically, the daily chart shows that the price remains well below a bearish 100 DMA, whilst the technical indicators aim modestly higher above their mid-lines, still below previous highs and within neutral territory, not enough to confirm an upward move. In the 4 hours chart, the price is currently above a bearish 200 SMA, whilst the 100 SMA stands flat below this last around 123.10, while the technical indicators have turned south within neutral territory, maintaining the risk towards the downside, despite the absence of downward momentum. 

Support levels: 123.10 122.70 122.25 

Resistance levels: 123.90 124.40 124.85



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