EUR/JPY: a bearish extension favoured - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair extended its decline down to 112.47, its lowest since July 11th, having broken below the 61.8% retracement of its latest bullish run between 109.36, the post-Brexit low, and 118.46, July's high  around 112.85, now the immediate resistance.

Key Quotes:

"The Japanese yen edged marginally higher against most of its major rivals, in spite of the positive tone among stocks, on dismal US data. Now holding a few pips above the mentioned low, the 1 hour chart presents a clear bearish tone, as the technical indicators resumed their declines after failing to overcome their mid-lines, whilst the 100 and 200 SMAs have accelerated their declines, with the shortest now offering a dynamic resistance around 113.60."

"In the 4 hours chart, the price is also well below its moving averages, while the technical indicators continue lacking directional strength, but within negative territory, also favoring a bearish extension on a break below 112.30, the immediate support."