Monday, 7 August 2017

EUR/JPY Meets stong support at the 100-day SMA

The EUR/JPY pair moved slightly higher today, but bulls couldn’t march beyond the daily high at 130.86, being influenced by the week Japanese yen and the US treasury yields that closed lower. 
During the afternoon the pair is keeping neutral attitude and the current market price is 130.57.
On the four-hour time frame the price has crossed to below its 20-day SMA, that is turning to downside, but yet is above the 100-day and 200-day SMAs. Stochastic has just reached its mid-line, but has sharply turned to south. RSI is also located around the middles with strong bearish slope. However indicators are not pointing any sure directional strength. For the time being critical level remains the immediate support at 129.85, where now is located the 100-day SMA. Only in case of breaking it, the pair will be poised to extend its downward movement towards 129.50 (late July’s lows). Looking to the upside as first resistance should be considered the 130.70 – 130.80 area.