EUR/JPY analysis: uncertainty to keep the risk towards the downside
|EUR/JPY Current price: 119.74
The EUR/JPY pair fell to a fresh weekly low of 119.55, but ended the day marginally lower in the 119.70 region, as despite generalized dollar's strength, investors were reluctant to unwind positions in safe-havens yen and gold, amid persistent political uncertainty. Furthermore, softer-than-expected US data helped the Japanese currency to trim almost half of its daily losses. Trading at the lower end of its latest range, the EUR/JPY technical picture is bearish, given that the pair has been unable to advance beyond its 100 DMA ever since the week started, although the indicator maintains a bullish slope around 120.20. Short term, the 1 hour chart shows that the 100 SMA crossed below the 200 SMA far above the current level, whilst the Momentum indicator heads south below its 100 level and the RSI indicator consolidates around 38, all of which supports a new leg lower on a break below the mentioned daily low. In the 4 hours chart, the 100 and 200 SMAs have accelerated their declines below the current level, with the shortest now around 120.80, and technical indicators aiming to recover within negative territory, reflecting the ongoing consolidation rather than suggesting an upcoming upward correction.
Support levels: 119.70 119.30 118.85
Resistance levels: 120.45 120.90 121.40
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