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27 Apr 2016
EUR/JPY: 124.50 is key support - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY extended its weekly rally up to 125.96 this Tuesday, and holds around 125.70, the 61.8% retracement of latest daily decline, by the end of the day.
Key Quotes:
"The Japanese yen came under some selling pressure mid American afternoon, as the market is pretty much convinced that the Bank of Japan which meets early Thursday, will refrain from adding more easing this month, while bets on the US Federal Reserve are of a hawkish stance."
"The 4 hours chart for the pair shows that the price is above its 100 and 200 SMAs, but that the technical indicators are diverging lower within positive territory, suggesting the rally may have reached an interim top.
Also, the poor performance of Wall Street suggests that Asian share markets will be unable to recover sharply, adding to a short term bearish case in the EUR/JPY.
The pair has an immediate support around 124.50, and it will take a break below it to confirm a downward move during the upcoming sessions, while only above 126.25, the pair will be able to extend its rally towards the 127.00 region. "
Key Quotes:
"The Japanese yen came under some selling pressure mid American afternoon, as the market is pretty much convinced that the Bank of Japan which meets early Thursday, will refrain from adding more easing this month, while bets on the US Federal Reserve are of a hawkish stance."
"The 4 hours chart for the pair shows that the price is above its 100 and 200 SMAs, but that the technical indicators are diverging lower within positive territory, suggesting the rally may have reached an interim top.
Also, the poor performance of Wall Street suggests that Asian share markets will be unable to recover sharply, adding to a short term bearish case in the EUR/JPY.
The pair has an immediate support around 124.50, and it will take a break below it to confirm a downward move during the upcoming sessions, while only above 126.25, the pair will be able to extend its rally towards the 127.00 region. "