FXStreet (Guatemala) - EUR/JPY has started to recovery out of the channel formed post the heavy supply at the start of December 2015's decline from above 134.30 where the New Year low so far reached as deep as 126.78. The Yen is beginning to experience some setbacks as risk appetite begins to emerge again with China's crisis digested by investors who are looking for a return on their idle capital. EUR/JPY level Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, the technical indicators remain directionless in positive territory, while the 100 and 200 SMAs converge flat around 128.00, offering an immediate short term support. "In the 4 hours chart, the technical indicators are turning slightly lower within neutral territory, whilst the 100 SMA has extended further lower its decline, now acting as a strong dynamic resistance around 129.00." For more information, read our latest forex news.