EUR/JPY analysis: further slides likely this week
|EUR/JPY Current price: 128.38
The EUR/JPY pair closed Friday at 128.38, down for a second consecutive week, as the Japanese yen appreciated strongly on the back of risk aversion by the end of the week. A terror attack in Barcelona, Spain, followed by attacks in Finland and Germany on Friday, sent investors towards safety by the end of the week. The Japanese yen was already strong, ahead of the events, fueled by disappointing FOMC Minutes released mid-week that sent T-yields down to weekly lows. The pair fell down to 127.55, its lowest since late June, but managed to trim part of its losses ahead of the close, on the back of EUR's recovery. From a technical point of view, the pair is at risk of falling further, as in the daily chart, technical indicators maintain their bearish slopes within negative territory, standing at two-month lows, with room to extend its decline during the upcoming days down to the 126.40 region, where a bullish 100 DMA should offer some support. In the 4 hours chart, the pair is also biased lower, as technical indicators have barely bounced from oversold levels before turning back lower, whilst the pair is developing far below its 100 and 200 SMAs, both in the 129.60/80 region.
Support levels: 128.00 127.55 127.10
Resistance levels: 128.80 129.25 129.60
View Live Chart for the EUR/JPY
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