EUR/JPY analysis: bearish below 112.85
|EUR/JPY Current price: 112.57
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The EUR/JPY pair fell for a second consecutive day, but held above last week's low, bouncing modestly after reaching 112.24. The Japanese yen saw a brief decline during the past Asian session as risk sentiment improved, but resumed its advance as European equities plunged. Despite Wall Street recovered sharply following Fischer's words, the pair remained under selling pressure and not far from the mentioned daily low. The short term picture shows that the bearish tone is still strong, as in the 1 hour chart, the price remains well below bearish moving averages, whilst technical indicators have resumed their declines within bearish territory, after a limited upward correction. In the 4 hours chart, the 100 SMA is accelerating its decline and nearing the 200 SMA, both in the 114.00/20 region, indicating that bears are in the driver's seat. Technical indicators in the mentioned time frame have have partially lost their downward strength, but remain well into negative territory, maintaining the risk towards the downside, as long as the price holds below 112.85, a Fibonacci resistance.
Support levels: 112.40 112.00 111.65
Resistance levels: 112.85 113.35 113.90
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