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9 Feb 2016
EUR/JPY rebounds sharply but remains under 130.00
The euro managed to erase losses against the Japanese yen but sill remains below the 130.00 level. EUR/JPY rose more than 150 pips from the lows on a stronger euro and despite some risk aversion.
During the Asian session it dropped to 128.26, reaching the lowest level since January 27. Then it stabilized and on European hours started to recover.
It peaked two hours ago at 130.25 but failed to hold above 130.00 an pulled back. So far the retreated from the highs found support 129.60 and it was trading at 129.65, around the same level it closed yesterday, attempting to avoid the sixth consecutive daily decline.
EUR/JPY technical outlook
“In the 1 hour chart, the latest recovery stalled around a bearish 100 SMA, while the technical indicators are turning south from near overbought levels, indicating some further short term slides for the pair”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4-hour chart, shows the price developing above its 100 and 200 SMAs, both converging around 129.40, “providing an immediate support, while the technical indicators have recovered from oversold levels and continue heading higher, but remain within negative territory, limiting chances of a stronger recovery ahead.”
During the Asian session it dropped to 128.26, reaching the lowest level since January 27. Then it stabilized and on European hours started to recover.
It peaked two hours ago at 130.25 but failed to hold above 130.00 an pulled back. So far the retreated from the highs found support 129.60 and it was trading at 129.65, around the same level it closed yesterday, attempting to avoid the sixth consecutive daily decline.
EUR/JPY technical outlook
“In the 1 hour chart, the latest recovery stalled around a bearish 100 SMA, while the technical indicators are turning south from near overbought levels, indicating some further short term slides for the pair”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4-hour chart, shows the price developing above its 100 and 200 SMAs, both converging around 129.40, “providing an immediate support, while the technical indicators have recovered from oversold levels and continue heading higher, but remain within negative territory, limiting chances of a stronger recovery ahead.”