EUR/JPY analysis: bearish momentum strong, 118.40 likely
|EUR/JPY Current price: 119.60
The EUR/JPY pair extended its weekly decline to a fresh low of 119.31, and settled at 119.60, down for a fourth consecutive day. An early decline in the Japanese yen was quickly reverted early London, as despite stocks hold around their opening levels, speculative interest continued favoring safe-haven assets. US Treasury yields recovered some ground, with the 10-year note benchmark at 2.42% from previous close of 2.40%, although it was not enough to contain demand for the JPY, neither were better-than-expected US housing data. The pair trades a few pips below 119.70, the 38.2% retracement of the October/December rally, biased lower according to intraday technical readings, as in the 1 hour chart, technical indicators have resumed their decline after a modest upward correction within negative territory, whilst the 100 and 200 SMAs, accelerated lower far above the current level. In the 4 hours chart, technical indicators have extended their declines to fresh monthly lows, entering oversold territory, indicating that further declines are likely, moreover on a break below the mentioned daily low.
Support levels: 119.30 118.85 118.40
Resistance levels: 119.70 120.25 120.60
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