EUR/JPY dampened by expectations of ECB

FXStreet (Guatemala) - EUR/JPY was hit in the cross fire in a stronger dollar and when the EUR was dumped on the back of sellers jumping onto the hint the ECB will need to act in relation to deflationary environments on the EZ.

Valeria Bednarik, chief analyst at FXStreet explained that US Yields held pretty well despite local mild weak data, supporting yen negative tone. “As for the technical picture”, she explained, “the EUR/JPY 1 hour chart shows price struggling around the 50% retracement of its latest daily bullish run, having stalled to the downside a couple pips above the 61.8% retracement of the same rally”.

EUR/JPY technical hourly conditions

Valeria Bednarik explained, “The hourly chart shows 100 SMA well below 200 one, and with a strong bearish slope now offering intraday resistance of 138.80, while indicators turn south below their midlines after correcting oversold levels. In the 4 hours chart technical indicators stand directionless in negative territory, giving no much clues of what’s next for the pair. A break below 137.90, is now required to confirm a new run lower, meant to extend towards 135.80 over the upcoming days”.

Support levels: 138.40 137.90 137.35

Resistance levels: 139.15 139.60 140.00