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4 May 2016
EUR/JPY: long way to go before a recovery - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair advanced for a third consecutive day, posting a daily high of 123.49 before ending the day just above the 123.00 figure.
Key Quotes:
"Demand for the Japanese yen continues to be nonexistent in spite of a risk-averse environment, as speculators remain side-lined on fears the BOJ may intervene the market.
The short term picture for the pair is neutral-to-bullish, as in the 1 hour chart, the price has managed to extend above a horizontal 100 SMA, currently around 122.40, while the 200 SMA stands at 123.90, providing a strong resistance in the case of further advances.
In this time frame, the technical indicators lack directional strength, with the RSI indicator turning slightly lower around 58 and the Momentum stuck around its mid-line.
In the 4 hours chart, the technical indicators hold within positive territory, but also lacking directional strength, whilst the price is well below its moving averages, indicating there's still a long way to go before talking about a steeper recovery."
Key Quotes:
"Demand for the Japanese yen continues to be nonexistent in spite of a risk-averse environment, as speculators remain side-lined on fears the BOJ may intervene the market.
The short term picture for the pair is neutral-to-bullish, as in the 1 hour chart, the price has managed to extend above a horizontal 100 SMA, currently around 122.40, while the 200 SMA stands at 123.90, providing a strong resistance in the case of further advances.
In this time frame, the technical indicators lack directional strength, with the RSI indicator turning slightly lower around 58 and the Momentum stuck around its mid-line.
In the 4 hours chart, the technical indicators hold within positive territory, but also lacking directional strength, whilst the price is well below its moving averages, indicating there's still a long way to go before talking about a steeper recovery."