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21 Apr 2016
EUR/JPY: downside compelling towards 122.00 - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY advanced up to 124.95, reaching by the pip the 50% retracement of the daily decline measured between 128.21 and 121.70, before turning south and plunging below the 124.00 level.
Key Quotes:
"The Japanese yen maintained quite a neutral stance all through the day, trapped between upbeat US employment figures, as weekly unemployment claims fell to 247K last week, the lowest since 1973, and the negative tone in stocks' markets after ECB's press conference."
"The EUR/JPY presents an increasing downward potential at the end of the day, as in the 4 hours chart, the price was unable to advance beyond a sharply bearish 100 SMA, whilst the Momentum indicator heads south below its 100 level, and the RSI indicator struggles around 50.
The immediate support comes at 123.35, the 23.6% retracement of the mentioned rally, and a break below it should signal a continued decline towards the 122.00 region by the end of the week, particularly if equities maintain the negative tone this Friday."
Key Quotes:
"The Japanese yen maintained quite a neutral stance all through the day, trapped between upbeat US employment figures, as weekly unemployment claims fell to 247K last week, the lowest since 1973, and the negative tone in stocks' markets after ECB's press conference."
"The EUR/JPY presents an increasing downward potential at the end of the day, as in the 4 hours chart, the price was unable to advance beyond a sharply bearish 100 SMA, whilst the Momentum indicator heads south below its 100 level, and the RSI indicator struggles around 50.
The immediate support comes at 123.35, the 23.6% retracement of the mentioned rally, and a break below it should signal a continued decline towards the 122.00 region by the end of the week, particularly if equities maintain the negative tone this Friday."