EUR/JPY analysis: recovery seems corrective, 119.70 key

Valeria Bednarik FXStreet

EUR/JPY Current price: 119.37

The EUR/JPY pair recovered some ground as the yen edged lower, weighed by bouncing US yields, on renewed hopes the US administration is ready to unveil a program to boost growth and inflation. There were no major releases in Japan, although the country will release retail trade and industrial production figures during the upcoming Asian session. The Japanese yen trimmed most of its Friday losses, but the recovery seems so far corrective, as in the 1 hour chart, the price remains below a bearish 100 SMA, now capping the upside around 119.20, whilst technical indicators consolidate near overbought territory, with no signs of changing course just yet. In the 4 hours chart, technical indicators have bounced from oversold readings, maintaining bullish slopes around their mid-lines whilst the 100 and 200 SMAs head sharply lower far above the current level. The pair needs to advance beyond 119.70, the 38.2% retracement of the October/December bullish run to reverse the dominant bearish trend.

Support levels: 118.70 118.25 117.70

Resistance levels: 119.70 120.10 120.55

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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