EUR/JPY: negative tone towards 122.00 persists - FXStreet

Ross J Burland FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair surged as the Japanese yen came under selling pressure, due to the strong upward momentum in worldwide stocks.

Key Quotes:

"BOJ's Governor Kuroda spoke at the Japanese parliament this Wednesday, reiterating that the Central Bank is ready to act if the yen strengthens too much."

"Indeed, nothing the marked didn't already know. Anyway, the macroeconomic calendar was scarce in the Asian session, and will remain so for this Thursday, with Japan releasing some minor figures that can hardly affect the market."

"Technically, the intraday recovery seems not enough to reverse the negative tone in the pair, and the short term picture suggest it may resume its decline during the upcoming hours, as in the 1 hour chart, the price is now stuck around its 100 SMA, whilst the technical indicators have turned south within positive territory."

"In the 4 hours chart, the 100 SMA stands at 123.20, acting as immediate resistance, whilst the technical indicators have merely crossed above their mid-lines, before losing upward strength. Should the price fall back below 122.50, the immediate support, the risk will turn back south, eyeing an extension below the 122.00 level."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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