EUR/JPY: upside limited on stocks - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair fell to its lowest since May 9th, as the Japanese yen outperformed its major rivals on the back of US Treasury Secretary warning against Japan's yen intervention to weaken the yen in the weekend's G7 meeting.

Key Quotes:

"Falling stocks during the Asian and European session fueled the advance of the JPY."

"Now trading a few pips above the daily low of 122.38 the EUR/JPY pair 1 hour chart shows that downward pressure persists, as the technical indicators have resumed their declines after a tepid correction of oversold readings, whilst the price is now far below its 100 and 200 SMAs, in the 123.20/40 region."

"In the 4 hours chart, the price has broken below its moving averages that anyway remain flat, due to the lack of directional strength seen last week, whilst the technical indicators hold within negative territory, suggesting the upside will likely remain limited."