EUR/JPY analysis: persisting yen strength points to 118.40
|EUR/JPY Current price: 119.73
The EUR/JPY pair plummeted on Friday, as despite dollar's positive tone and Wall Street closing at record highs, US Treasury yields extended their retreat. The 10-year note benchmark closed the week at 2.42% after reaching a peak of 2.52% on Wednesday, following Yellen's semiannual testimony. The pair has closed below its 100 DMA for the first time since early November 2016, and a few pips below a major Fibonacci level, the 38.2% retracement of the October/December rally at 119.70, while in the daily chart, technical indicators have failed to surpass their mid-lines, and turned sharply lower, all of which favors additional declines ahead, moreover on a break below February low at 119.32, the immediate support. In the 4 hours chart, technical readings also indicate that the risk is towards the downside, as indicators maintain sharp bearish slopes near oversold readings, whilst the price was contained by a bearish 100 DMA for most of the week, with bulls finally giving up on Friday. A break below the mentioned monthly low will favor a downward extension towards the 118.40 region, the 50% retracement of the mentioned rally.
Support levels: 119.30 118.85 118.40
Resistance levels: 120.00 120.45 120.90
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.