EUR/JPY: sidelined on FOMC, neutral - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair trades mostly flat daily basis, having rallied earlier in the day up to 123.90, on a weakening JPY.

Key Quotes:

"The Japanese currency fell as better-than-expected Q1  GDP in the country eased pressures over the BOJ in regards of adding more stimulus in the near term, although losses were limited, as investors held side-lined ahead of the FOMC.  

The short term picture suggests the pair may extend its decline during the Asian session, as in the 1 hour chart, the price is about to break below its 100 and 200 SMAs, with the shortest already below the largest and heading lower, although the technical indicators are losing upward strength, but still within positive territory.

In the 4 hours chart, the pair presents a neutral-to-bearish stance, as the indicators are turning lower around their mid-lines, whilst the price remains trapped within bearish moving averages."