EUR/JPY: adding pressure on a bullish 100 SMA at H4 chart - FXStreet

Valeria Bednarik, chief analyst at FXStreet, explained that the EUR/JPY pair is trading lower as the Japanese yen strengthened following the release of mixed data from the United States early today.

Key Quotes:

"The yen moved in opposite direction to US stocks, both boosted by decreasing hopes of a US rate hike this month. The EUR/JPY has been trading in a well-limited range between Fibonacci levels ever since the month started, and is currently midway, hovering around the 38.2% retracement of its latest bullish run. In the short term, the risk is towards the downside, as the price has broken below its 100 and 200 SMAs that anyway hold within a tight range around 114.90/115.00 lacking directional strength, while technical indicators turned south within bearish territory."

"In the 4 hours chart, the price is pressuring a bullish 100 SMA, although technical indicators have turned sharply lower, and are crossing their mid-lines with a nice bearish momentum, also supporting some additional declines for today."