EUR/JPY: mixed technicals witin minor recovery- FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that EUR/JPY pair surged up to 113.75, trading nearby at the end of the day, recovering from the 3-week low set at 112.30 last Friday, after a stronger-than-expected US employment report.

Key Quotes:

"Data coming from Japan was weaker-than-expected, as the trade surplus was half market's expectations, weighing on the currency. Technically, the intraday recovery stalled below the 113.90 region, the 50% retracement of the latest bullish run at 113.95, the level to surpass to see the current rally extending."

"Short term, the 1 hour chart shows that price is between its 100 and 200 SMAs, with the shortest around 113.00 and the largest at 114.10, both maintaining bearish slopes. Technical indicators in the mentioned time frame retreat from near overbought levels within positive territory, diverging from price action but not yet signaling a bearish continuation."

"In the 4 hours chart, technical indicators present a modest positive tone, heading higher above their mid-lines, yet the price remains well below its moving averages, suggesting any upcoming recovery will likely be short lived."