EUR/JPY: limited chances of a steep recovery - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen suffered during the past Asian session, undermined by renewed hopes of a US rate hike this year, alongside with verbal intervention from Japanese policymakers, as the USD/JPY broke below the 100.00 figure this week.

Key Quotes:

"The EUR/JPY pair surged up to 113.92 late Tuesday, being quickly rejected by selling interest around the 50% retracement of its latest bullish run, but bouncing from a daily low set at 112.82 the 61.8% retracement of the same rally and a major static support."

"The 1hour chart shows that the price is right below its 100 and 200 SMAs, both converging at 113.20 and horizontal, which are reflecting the absence of trend around the pair, whilst the technical indicators hold within bearish territory, limiting chances of a steeper recovery."

"In the 4 hours chart, the 100 SMA continued declining above the current level, whilst the technical indicators remain directionless around their mid-lines."