7 Apr 2014
EUR/JPY vulnerable, 141.30 key technical level
FXStreet (Bali) - EUR/JPY retains the heavy tone in early Tokyo, posting a session low of 141.45, just some pips short of last Friday's low at 141.40.
The latest decline off 143.50 area has caused the technicals to deteriorate significantly, with prospects of further losses once sellers can overcome the next key level of support at the 141.30/40 vicinity, which represents the 61.8% fib retrac from the March 17-April 4 run.
According to Valeria Bednarik, Chief Analyst at FXStreet: "EUR/JPY holds an increased short term bearish potential based on the hourly chart: price broke below its moving averages, while indicators head slightly higher correcting oversold readings rather than suggesting a comeback."
Bednarik adds: "In the 4 hours chart indicators maintain a strong bearish tone, while price hovers a few pips above the 61.8% retrac of the latest bullish run at 141.30. A break below this last should signal a bearish continuation, eyeing 140.40 strong static support area, in route to 139.90 price zone."
The latest decline off 143.50 area has caused the technicals to deteriorate significantly, with prospects of further losses once sellers can overcome the next key level of support at the 141.30/40 vicinity, which represents the 61.8% fib retrac from the March 17-April 4 run.
According to Valeria Bednarik, Chief Analyst at FXStreet: "EUR/JPY holds an increased short term bearish potential based on the hourly chart: price broke below its moving averages, while indicators head slightly higher correcting oversold readings rather than suggesting a comeback."
Bednarik adds: "In the 4 hours chart indicators maintain a strong bearish tone, while price hovers a few pips above the 61.8% retrac of the latest bullish run at 141.30. A break below this last should signal a bearish continuation, eyeing 140.40 strong static support area, in route to 139.90 price zone."