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EUR/JPY downside risks prevail

FXStreet (Guatemala) - EUR/JPY is currently testing the upside of the past few session ranges since yesterday’s recovery from 140.56.

The Yen has been on the back foot for the most part with strength returning to the greenback and stocks. A temporary relief maybe the theme here in oversold territory and fundamentals weighing more so on the Euro overall currently.

Meanwhile, we are now testing key support seen clearly on the daily chart at 141.20 and September 2014 top. Continuing along with a longer term basis, 150.00 supply chains are weighing on the summer of 2012’s bull run still, in the broader sense, and keeps a lid on the bulls defenses. Karen Jone, chief analyst at Commerzbank explained the view that the market has recently topped just ahead of 150.00, and said “ Short to medium, the risk is now to the downside”.

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