EUR/JPY: Sharp deterioration in the ST technical outlook - Natixis

The increase in the daily volatility and the fact that the daily indicators have turned around suggest the emergence of a downside bubble on the daily chart and consequently a sharp deterioration in the ST technical outlook according to Micaella Feldstein, Research Analyst at Natixis.

Key Quotes

“Against this backdrop, we expect a deeper decline to 123.18 (daily Bollnger lower band) ahead of 122.60 and 122.05-122.12 (9-week moving average). A break below these last supports would open the door to 121.70 (monthly Bollinger moving average) and 121-121.14 (weekly Bollinger moving average). The resistances stand at 124, at 124.43 and at 124.94-125.14.”