EUR/JPY analysis: bearish momentum increases, 120.00 at sight
|EUR/JPY Current price: 121.01
The Japanese yen surged in a risk-averse environment, resulting in the EUR/JPY pair falling to its lowest since early December, 120.74, before settling around the 121.00 level. Data coming from Japan overnight was mixed, with December Domestic Corporate Goods price index up by 0.6% monthly basis, beating expectations of a 0.3% advance, while the YoY reading resulted at -1.2%, well above previous -2.2%, although machinery orders plummeted by 5.1%, when compared to the previous month. The pair is now at risk of falling further, as it broke below the 23.6% retracement of the 112.89/124.09 rally at 121.40, the immediate resistance. Short term, the 1 hour chart shows that the price has been confined to a well-limited range for most of the last two sessions, letting technical indicators correct the extreme oversold conditions reached at the beginning of the day, although they remain within bearish territory, whilst the 100 and 200 SMAs head sharply lower above the current level, all of which maintains the upside limited. In the 4 hours chart, the 100 and 200 SMAs are coming together around 122.20, whilst technical indicators lack certain directional strength, but remain well below their mid-lines, indicating that the risk remains towards the downside.
Support levels: 120.75 120.40 120.10
Resistance levels: 121.40 121.90 122.30
View Live Chart for the EUR/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.