EUR/JPY analysis: lower low favors additional yen's gains

Valeria Bednarik FXStreet

EUR/JPY Current price: 121.00

The EUR/JPY closed the day with modest losses, led by EUR's moves, as despite the BOJ also had its monetary policy meeting this Thursday, the decision barely affected the JPY. The pair spiked to 121.88 after Draghi's opening words were seen as hawkish, but quickly retreated after the Central Bank announced that tapering is still out of the table amid poor inflationary developments in the region. A retracement in US Treasury yields and poor developments among worldwide indexes, supported a modest advance in the JPY. From a technical point of view, the 4 hours chart shows that the price continues to develop above its 100 ad 200 SMAs, but also that technical indicators retreated further within positive territory, now without directional strength. Given the lower low daily basis, at 120.60, a break below this last should result in an approach to the 120.00 region, en route to 119.75, a major Fibonacci support.

Support levels: 120.60 120.10 119.75

Resistance levels: 121.40 121.95 122.40

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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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