7 Jan 2016
EUR/JPY: risks remain to the downside - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair extended its decline down to 127.00 this Wednesday, a fresh 9-month low, although the pair erased most of its daily losses as the common currency recovered ground following the release of FOMC Minutes, exposing FED's officers concerns over low inflation.
Key Quotes:
"The EUR/JPY 1 hour chart shows that the technical indicators are recovering, and heading higher above their mid-lines, yet the price is far below its 100 SMA, currently heading south around 129.40, which means that a longer term recovery is still out of the table.
In the 4 hours chart, the RSI indicator is aiming higher, but still within oversold territory, while the momentum indicator also bounced from extreme levels and remains far below its mid-line, maintaining the risk towards the downside."
Key Quotes:
"The EUR/JPY 1 hour chart shows that the technical indicators are recovering, and heading higher above their mid-lines, yet the price is far below its 100 SMA, currently heading south around 129.40, which means that a longer term recovery is still out of the table.
In the 4 hours chart, the RSI indicator is aiming higher, but still within oversold territory, while the momentum indicator also bounced from extreme levels and remains far below its mid-line, maintaining the risk towards the downside."