EUR/JPY analysis: bearish potential growing in the macro front

Valeria Bednarik FXStreet

EUR/USD Current price: 124.34

The EUR/JPY pair traded within a limited 40 pips range this Monday, to end unchanged from Friday's close, as with major stocks' markets closed, the Asian currency was unable to attract investors. ECB's Draghi kept the upside limited for the cross, after reiterating that easing is still need amid subdued inflation, with diminishing chances of a hawkish stance next June meeting weighing on the common currency. Japan will release its April unemployment and retail sales data, expected to have improved modestly from March figures. Better-than-expected figures will likely become JPY supportive, as it will mean that BOJ's easing policy will be approaching to an end. Technically, the 4 hours chart presents a neutral-to-bearish stance, as the price remains trapped around its 100 DMA, but technical indicators keep declining within oversold territory. An extension below 124.00, should favor additional slides towards 123.20, the 23.6% retracement of the bullish run between 114.83 and 158.80 between April and May.

Support levels: 124.00 123.60 123.20

Resistance levels: 124.90 125.40 125.80

View Live Chart for the EUR/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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