3 May 2016
EUR/JPY: correcting extreem oversold conditions - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY pair managed to recover some ground this Monday, as the JPY pared gains and turned lower amid Wall Street's gains.
Key Quotes:
"The pair however, trades below Friday's high of 122.93, and needs to advance beyond it to be able to post a more sustainable recovery. Short term, the 1 hour chart shows that the technical indicators remain flat within positive territory, but also that the 100 SMA accelerated its decline and heads south below the 200 SMA, with the shortest around 123.60, becoming a probable bullish target should the ongoing advance extended.
In the 4 hours chart, the technical indicators corrected their extreme oversold conditions, but the recoveries stalled below their mid-lines and are currently turning back south, indicating the upside potential is still limited."
Key Quotes:
"The pair however, trades below Friday's high of 122.93, and needs to advance beyond it to be able to post a more sustainable recovery. Short term, the 1 hour chart shows that the technical indicators remain flat within positive territory, but also that the 100 SMA accelerated its decline and heads south below the 200 SMA, with the shortest around 123.60, becoming a probable bullish target should the ongoing advance extended.
In the 4 hours chart, the technical indicators corrected their extreme oversold conditions, but the recoveries stalled below their mid-lines and are currently turning back south, indicating the upside potential is still limited."