EUR/JPY: upside remains limited on reduced speculation on BoJ stimulus - FXStreet
|Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair closed the week marginally lower at 116.46, with the Japanese yen recovering partially market's favor, on speculation that the recent decline of the currency, based on speculation of upcoming fiscal and monetary stimulus as soon as this month, has exceeded BOJ's real intentions.
Key Quotes:
"Further weighed by EUR's weakness, the technical outlook for the pair is not yet confirming a downward continuation, as in the daily chart, the price keeps hovering around the 61.8% retracement of the post-Brexit slump, around 117.20, while the Momentum indicator is barely retreating within overbought territory, while the RSI indicator heads south around 51."
"Still, the upside seems well-limited, with the 100 and 200 SMAs maintaining their bearish slopes well above the current level."
"In the 4 hours chart, the price is holding above a bearish 200 SMA, now around 116.10, while the technical indicators lack directional strength within negative territory, in line with the longer term perspective."
"The pair needs to break below the 115.60 region to confirm a steeper decline that can extend down to 114.10, the 38.2% retracement of the mentioned slide."
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