22 Jul 2014
EUR/JPY: Dominant trend bearish, 136.60 critical - FXStreet
FXStreet (Bali) - Valeria Bednarik, Chief Analyst at FXStreet, notes that the dominant trend in EUR/JPY is still bearish, adding that critical support continues to be at 136.60.
Key Quotes
"Stocks markets were a bit more entertained over the last session, with European indexes strongly down, and leading to a negative opening in Wall Street that saw DJIA down over 125 points."
"But American indexes managed to bounce and by the session close trade a few points down, still reflecting the strength of the buying on dips. US Yields also edged lower, with yen finally barely up against its rivals and EUR/JPY struggling around the 137.00 mark."
"Flat in the short term, the dominant trend is still bearish with price near the 5-month low posted last week at 136.70; the hourly chart shows both 100 and 200 SMA with nice bearish slopes above current price and containing the upside, while the 4 hours chart shows RSI flat right above 30 and momentum retracing from below its midline, all of which keeps the pressure to the downside. Critical support continues to be at 136.60 and if broken, the slide may extend closer to 135.00 before finally halting."
Key Quotes
"Stocks markets were a bit more entertained over the last session, with European indexes strongly down, and leading to a negative opening in Wall Street that saw DJIA down over 125 points."
"But American indexes managed to bounce and by the session close trade a few points down, still reflecting the strength of the buying on dips. US Yields also edged lower, with yen finally barely up against its rivals and EUR/JPY struggling around the 137.00 mark."
"Flat in the short term, the dominant trend is still bearish with price near the 5-month low posted last week at 136.70; the hourly chart shows both 100 and 200 SMA with nice bearish slopes above current price and containing the upside, while the 4 hours chart shows RSI flat right above 30 and momentum retracing from below its midline, all of which keeps the pressure to the downside. Critical support continues to be at 136.60 and if broken, the slide may extend closer to 135.00 before finally halting."