EUR/JPY: Wall Street supported the recovery to 123.36 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen gapped higher against most of its major rivals at the weekly opening, leading to a decline in the EUR/JPY to 121.70, its lowest in two-years. 

Key Quotes:

"The pair however, bounced in the American afternoon, as Wall Street managed to hold in the green, whilst BOJ's Governor Kuroda reiterated that the Central Bank is ready to ease further."

"The intraday recovery in the pair stalled below Friday's high of 123.53, and the 1 hour chart shows that the technical indicators have lost upward strength near overbought territory, and are currently turning south, whilst the price is trapped between the 100 and 200 SMAs, this last offering an immediate resistance around 123.40."

"In the 4 hours chart, the technical indicators bounced from oversold readings, but turned flat after reaching their mid-lines, maintaining a neutral stance at the time being, whilst the price remains well below its moving averages, leaving little room for additional gains."