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9 Nov 2015
EUR/JPY: downside potential limited - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair fell down to 131.44 last Friday, but closed the day pretty much unchanged around 132.30, amid the even weakness of the EUR and the JPY against the greenback.
Key Quotes:
"Nevertheless, the pair maintains the bearish tone seen over the last two weeks, as the daily chart shows that it established a lower low below its 100 and 200 SMAs, whilst the technical indicators maintain their bearish slopes well into negative territory."
"In the 4 hours chart, however, the Momentum indicator aims slightly higher above its mid-line, partially limiting the downward potential, although with the price well below its moving averages and the RSI indicator heading south around 45, chances of an upward move seem also limited. The immediate support stands at 131.80, with a break below it probably indicating fresh monthly lows below the 131.00 level."
Key Quotes:
"Nevertheless, the pair maintains the bearish tone seen over the last two weeks, as the daily chart shows that it established a lower low below its 100 and 200 SMAs, whilst the technical indicators maintain their bearish slopes well into negative territory."
"In the 4 hours chart, however, the Momentum indicator aims slightly higher above its mid-line, partially limiting the downward potential, although with the price well below its moving averages and the RSI indicator heading south around 45, chances of an upward move seem also limited. The immediate support stands at 131.80, with a break below it probably indicating fresh monthly lows below the 131.00 level."