EUR/JPY analysis: yen's strength dominates
|EUR/JPY Current price: 122.34
The EUR/JPY pair fell for a second consecutive day, settling a few pips above the daily low of 122.13, as the Japanese yen maintained its latest strength, despite the recovery in stocks. The fact that the Bank of Japan will grapple to its "zero rate" policy, however, will likely prevent the yen from appreciate much in the longer run. However, and given that we are getting close to the end of the Japanese fiscal year, on March 31st, the JPY will tend to appreciate. From a technical point of view, and for the upcoming sessions, the 4 hours chart shows that the Momentum indicator heads south below the 100 level, the RSI indicator consolidates around 42, while the price is below a horizontal 100 SMA, all of which favors some further slides. In the same chart, the 200 SMA heads higher, currently at 122.03, the immediate support. A break below the level, should lead to a continued decline towards 121.40, a major Fibonacci support and the base of these last weeks' range.
Support levels: 122.00 121.40 120.90
Resistance levels: 122.65 123.10 123.50
View Live Chart for the EUR/JPY
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