EUR/JPY: negative tone towards 122.00 persists - FXStreet
|Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair surged as the Japanese yen came under selling pressure, due to the strong upward momentum in worldwide stocks.
Key Quotes:
"BOJ's Governor Kuroda spoke at the Japanese parliament this Wednesday, reiterating that the Central Bank is ready to act if the yen strengthens too much."
"Indeed, nothing the marked didn't already know. Anyway, the macroeconomic calendar was scarce in the Asian session, and will remain so for this Thursday, with Japan releasing some minor figures that can hardly affect the market."
"Technically, the intraday recovery seems not enough to reverse the negative tone in the pair, and the short term picture suggest it may resume its decline during the upcoming hours, as in the 1 hour chart, the price is now stuck around its 100 SMA, whilst the technical indicators have turned south within positive territory."
"In the 4 hours chart, the 100 SMA stands at 123.20, acting as immediate resistance, whilst the technical indicators have merely crossed above their mid-lines, before losing upward strength. Should the price fall back below 122.50, the immediate support, the risk will turn back south, eyeing an extension below the 122.00 level."
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.