EUR/JPY: lack of buying interest in the short-term - FXStreet

Valeria Bednarik, chief analyst at FXStreet, explained that EUR/JPY is extending its downside move for the third day in a row, posting a fresh 4-week low at the 113.46 level.

Key Quotes:

"The yen strengthened on speculation that the BOJ will offer a cautious approach in its upcoming  economic policy decision, to prevent hitting banks further with a deeper rate cut into negative territory. The pair broke below a Fibonacci support in the 113.90 region, the 50% retracement of its post-Brexit recovery around 113.90, with recoveries up to the level attracting some intraday selling interest."

"Short term, the 1 hour chart shows that the price is standing also well below the 100 and 200 SMAs, both around 114.75, while technical indicators hold flat within bearish territory and after correcting oversold readings, indicating the absence of buying interest. In the 4 hours chart, the price has extended its decline below the 200 SMA while technical indicators head sharply lower within bearish territory, supporting some further slides on a downward acceleration below the mentioned daily low."