EUR/JPY: price developing strong bearish case, 112.60 key support - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair consolidate its latest losses, pressuring the 113.00 level ahead of Wall Street's close, retaining the bearish bias seen on previous updates.

Key Quotes:

"The Japanese currency rallied on the back of plummeting stocks, as Nikkei edged roughly 2% lower on increasing distrust over the effectiveness of Abe's latest announcements. The 1 hour chart shows that the 100 and 200 SMAs have accelerated their declines above the current level, with the shortest now around 114.30, while the Momentum indicator hovers below its 100 level and the RSI indicator heads south around 36, all of which supports some further declines."

"In the 4 hours chart, the price continues developing far below its moving averages, while the RSI heads modestly lower within oversold territory, also pointing to a bearish extension. The key support comes at 112.60, the 23.6% retracement of the post-Brexit slump."