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10 Sep 2015
EUR/JPY: bullish on risk sentiment- FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY extended its latest rally up to 135.18, with the Japanese yen under pressure ever since the day started, weighed by a sudden change in markets' sentiment.
Key Quotes:
"Also favoring yen's decline were comments from Prime Minister Shinzo Abe who announced a tax cut as the slow recovery in the country continues to weigh."
"Technically, the 1 hour chart shows that the price has managed to extend above its 200 SMA whilst the technical indicators are now regaining upward strength well into positive territory, supporting additional gains ahead. In the 4 hours chart, the technical indicators are giving their first signs of upward exhaustion near overbought territory, but still far from suggesting a downward acceleration."
"In this last time frame, the pair continues trading below its 100 and 200 SMAs, which maintains further long term gains still unclear. The pair has an immediate resistance around 135.30, where it presents several intraday highs and lows, with a break above it now required to confirm a bullish continuation for the upcoming sessions."
Key Quotes:
"Also favoring yen's decline were comments from Prime Minister Shinzo Abe who announced a tax cut as the slow recovery in the country continues to weigh."
"Technically, the 1 hour chart shows that the price has managed to extend above its 200 SMA whilst the technical indicators are now regaining upward strength well into positive territory, supporting additional gains ahead. In the 4 hours chart, the technical indicators are giving their first signs of upward exhaustion near overbought territory, but still far from suggesting a downward acceleration."
"In this last time frame, the pair continues trading below its 100 and 200 SMAs, which maintains further long term gains still unclear. The pair has an immediate resistance around 135.30, where it presents several intraday highs and lows, with a break above it now required to confirm a bullish continuation for the upcoming sessions."