EUR/JPY analysis: range bound as the market is all about the greenback
|EUR/JPY Current price: 120.02
The EUR/JPY pair continues trading range bound, contained by selling interest around 120.30, but bouncing on approaches to 119.70, a major Fibonacci support. Additionally, both currencies have resumed their tandem-trading against the greenback in a risk-dependent market. The sharp recovery in equities has hardly affected the yen, which remained subdued during the first half of the day as yields maintained the sour tone coming from last week, while during the American afternoon and despite the strong recovery in stocks, yields barely bounced from their recent lows. Short term, the technical picture is neutral-to-bearish, as in the 1 hour chart, the price is struggling to recover above a bearish 100 SMA, whilst technical indicators have bounced from oversold readings, but lost directional strength within bearish territory. In the 4 hours chart, the price remains well below its 100 and 200 SMA while the Momentum indicator turned flat around 100 and the RSI aims to recover, but stands at 44. The key support is still 119.30, last week low and the level to break to see the yen advancing further.
Support levels: 119.70 119.30 118.85
Resistance levels: 120.30 120.60 121.00
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