EUR/JPY: strong intra-day resistance ahead - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair edged modestly higher on Monday, as the Japanese yen retains its bullish strength against most of its major rivals, beyond risk sentiment.

Key Quotes:

"The pair continues pressuring the 112.80 critical Fibonacci support, the 61.8% retracement of the post-Brexit recovery, having fell intraday down to a fresh 2-week low of 112.67, in line with the underlying bearish trend. Short term, however, the pair maintains a neutral stance, with the 1 hour chart showing that the price is unable to extend beyond a horizontal 100 SMA, and the technical indicators going nowhere within positive territory.

In the 4 hours chart, the Momentum indicator continues horizontal, stuck around its 100 level, while the RSI hovers around 49, with no certain directional strength. In this last time frame, the 100 SMA has extended its decline below the 200 SMA, with the shortest around 114.10, offering a strong intraday resistance in the case of a sudden recovery."