EUR/JPY analysis: marginally higher, bearish risk below 112.85
|EUR/JPY Current price: 113.27
The EUR/JPY pair rallied up to 114.18, as the Japanese yen weakened at the beginning of the day, as stocks soared following the sharp advance in oil prices, although the Asian currency resumed its advance during the US session, as Wall Street plummeted. Now trading marginally higher daily basis, the 1 hour chart shows that the price retreated back towards its 100 and 200 SMAs, both around 113.10/20, but holds above them at this point, while technical indicators are losing their downward strength, but still well into negative territory. In the 4 hours chart, the price was unable to advance beyond its 100 and 200 SMAs, while technical indicators have turned sharply lower from near overbought readings, maintaining their strong bearish slopes, but still above their mid-lines, not enough to confirm a downward continuation. An extension below 112.85, however, the 61.8% retracement of the latest daily decline, should signal a bearish continuation towards the 112.00 region.
Support levels: 112.85 112.40 112.00
Resistance levels: 113.35 113.80 114.20
View Live Chart for the EUR/JPY
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