EUR/JPY: dominated by Yen strength - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair remained dominated by JPY's strength, plummeting to a fresh 4-week low of 124.84 after the release of the US Federal Reserve Minutes, and holding nearby by the end of the day.

Key Quotes:

"The Nikkei 225 halted the bleeding on Wednesday, closing the day 17 points lower at 15,715.36, with local investors' sentiment being weighed by another round of poor local data. The Leading economic index came in at 99.8 in February from 101.8 previous, while the Coincident index also fell, to 110.3 from 113.5.

The short term picture is clearly bearish, given that in the 1 hour chart, the 100 SMA has crossed below the 200 SMA, both well above the current level, while the technical indicators head modestly lower within negative territory.

In the 4 hours chart, and after a long lasting battle, the price is now below its 200 SMA, whilst the technical indicators are resuming their declines within negative territory, in line with further declines towards the 124.40 region, the 23.6% retracement of the February/March bearish run."