19 Nov 2013
EUR/JPY keeps failing at 135.30/40, Nikkei keeps bear pressure on
FXstreet.com (Barcelona) - EUR/JPY is retesting Monday lows around 134.70/80 with buyers finding little comfort as a negative opening in the Nikkei - tracking poor sentiment in the US equity market - puts pressure on the downside.
EUR/JPY technical context
Despite the strong rally in EUR/JPY, the context as seen on the daily continues to suggest caution, especially after the second failed topside attempt at 135.35/40 cement resistance on Monday.
According to Valeria Bednarik, Chief Analyst at FXstreet.com: "self EUR strength is preventing much of a slide in EUR/JPY, although the hourly chart presents a pretty neutral stance as indicators stand flat around their midlines. 100 and 200 |SMAs in the mentioned time frame stand firm well below current price, with 100 one offering strong support in case of slides around 134.50."
"In the 4 hours chart momentum presents a slightly bearish divergence, approaching its midline as price holds around the daily highs. Expect a break below mentioned 134.50 area to signal a deeper correction eyeing then 133.00 price zone" Bednarik adds.
EUR/JPY technical context
Despite the strong rally in EUR/JPY, the context as seen on the daily continues to suggest caution, especially after the second failed topside attempt at 135.35/40 cement resistance on Monday.
According to Valeria Bednarik, Chief Analyst at FXstreet.com: "self EUR strength is preventing much of a slide in EUR/JPY, although the hourly chart presents a pretty neutral stance as indicators stand flat around their midlines. 100 and 200 |SMAs in the mentioned time frame stand firm well below current price, with 100 one offering strong support in case of slides around 134.50."
"In the 4 hours chart momentum presents a slightly bearish divergence, approaching its midline as price holds around the daily highs. Expect a break below mentioned 134.50 area to signal a deeper correction eyeing then 133.00 price zone" Bednarik adds.