EUR/JPY: 124.90 is key resistance - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen's weakness has helped the EUR/JPY pair to rally to its highest in four weeks, as it reached 124.43, before poor US data helped the JPY to recover some ground, and sent the pair lower.

Key Quotes:

"Still holding above the 124.00 level, the pair is consolidating around the 38.2% retracement of the latest daily slump between 128.21 and 121.70, at 124.18, suggesting this latest upward corrective move can be merely corrective."

"Short term, the pair is headed lower, as in the 1 hour chart, the technical indicators are retreating from extreme overbought territory, although the 200 SMA converges with the 23.6% retracement of the same rally at 123.25, indicating the price needs to extend below this last to resume its bearish trend."

"In the 4 hours chart, the RSI indicator is retreating from near overbought levels, whilst the Momentum indicator turned lower within positive territory, as the 100 SMA extended its decline below the 200 SMA above the current level, and providing a major resistance around 124.90, in the case of further advances."