EUR/JPY analysis: consolidative phase extends, downside limited

Valeria Bednarik FXStreet

EUR/JPY Current price: 123.15

The EUR/JPY pair ended the week at the higher end of its latest range, but remains unable to find a certain direction trading within a well-define extent since mid December. The pair recovered ground on Friday, as the yen eased against all of its major rivals following a recovery in US yields. The 10-year note benchmark recovered from a five-week low posted following the FOMC's up to 2.42% from previous 2.37%, while those of the 30-year bonds recovered from 2.96%, a seven-week low, to 3.00%. According to the daily chart, and despite the lack of a clear trend, the pair presents a modest upward tone, given that the pair has entered a consolidative stage after topping at 124.09 on December 15th, bouncing on approaches to 121.40, the 23.6% retracement on the October/December bullish run. Furthermore, and in the same chart, technical indicators have bounced modestly from their mid-lines, whilst the 100 DMA is crossing above the 200 DMA for the first time since late November. In the 4 hours chart, technical indicators have turned modestly lower within positive territory, whilst the price stands above a horizontal 100 SMA that reflects the current neutral stance.

Support levels: 122.60 121.90 121.40

Resistance levels: 123.50 124.10 124.50

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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