EUR/JPY: Bearish Towards 120.20/40 Price Zone - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY pair fell down to 121.32, but trimmed all of its daily losses ahead of the US close, to end the day pretty much flat below the 122.00 figure.
"The Japanese yen has traded generally higher against all of its major rivals, underpinned by an upward revision of Q1 GDP figures, up to 0.5% from previous 0.4%. The risk is towards the downside, although the ongoing lack of directional strength leaves technical readings for the most neutral. Nevertheless and in the 1 hour chart, the price is moving back and forth around a bearish 100 SMA, whilst the technical indicators are stuck around their mid-lines."
"In the 4 hours chart, the 100 and 200 SMAs keep heading lower above the current level, whilst the technical indicators are posting modest bounces from their mid-lines, but remain below recent lows, with no momentum. A break below 121.30 is now required to confirm additional declines towards the 120.20/40 price zone."