EUR/JPY: a time for a pause and a think? - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen surged during the New York session, as local shares plunged, as investors continued to bet that a recent string of US positive economic data will be enough for the Federal to raise rates next December.

Key Quotes:

"The EUR/JPY pair plunged to 114.00,  bouncing modestly before the close, but having erased most of its last week's gains and on a brink of breaking lower, as the pair is now pressuring the 50% retracement of its June/July rally. Short term, the 1 hour chart shows that the price broke below the 100 and 200 SMAs after failing to extend gains beyond the shortest, while technical indicators have lost bearish strength, but remain in oversold territory, suggesting a pause rather than downward exhaustion."