EUR/JPY analysis: still at risk of a bearish extension
|EUR/JPY Current price: 120.09
The EUR/JPY pair settled a handful of pips above the 120.00 level, as the yen traded marginally lower across the board. No news were good news for financial markets, as Asian and European equities closed marginally higher, keeping risk aversion on check. The short term picture for the pair keeps favoring the downside, as the price retreated from an early spike up to 120.29, and the 1 hour chart shows that the price stalled well below its moving averages, whilst technical indicators have retreated within positive territory, now challenging their mid-lines. In the 4 hours chart, technical indicators corrected the extreme oversold readings reached on Friday, but lost upward strength and resumed their declines within negative territory, whilst the 100 SMA accelerated its decline above the current level, maintaining the risk towards the downside and favoring a new leg lower on a break below 119.70 the immediate support.
Support levels: 119.70 119.30 118.85
Resistance levels: 120.45 120.90 121.40
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