EUR/JPY extends losses into a third straight day

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The Japanese yen continued to strengthen on Tuesday benefited by the risk off environment, dragging EUR/JPY to fresh 8-month lows.

    EUR/JPY lost more than 150 pips throughout the day and bottomed out at 127.50, last seen Apr 21, before steading in a slim range just above that level. At time of writing, EUR/JPY is trading at 127.83, down 1.15% on the day, posting the third loss in a row.

    EUR/JPY technical perspective

    According to Valeria Bednarik, chief analyst at FXStreet, “The pair has lost over 400 pips during the last three trading days and, despite oversold, there are no technical signs that a bottom has been reached, as the daily chart shows that the technical indicators maintain their sharp bearish slopes, with the RSI indicator heading south around 22”.

    Bednarik locates immediate support levels at 127.50, 127.15 and 126.60, while resistances are seen at 128.20, 128.65 and 129.10.
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